The Catholic humanitarian organisation Caritas Internationalis and various religious institutions are set to get a boost thanks to the funding.
Speaking during a Vatican press conference on Wednesday, Michel Roy from Caritas said: "The UN has launched an appeal. Right now, it is half funded.
"There's a real need for the international community to engage more, much more. This cannot be just another forgotten conflict, like Darfur".
Tens of thousands of people have died in the African nation since a civil war broke out in December 2013.
An estimated six million people - half of the country's population - will face extreme food insecurity between this month and July, according to government and United Nations reports.
The pope postponed a planned visit to South Sudan this year but the Vatican says he is "clearly more determined than ever to raise awareness about the need to support those suffering from conflict and starvation."
A college run by Solidarity with South Sudan in Yambio - close to the Democratic Republic of the Congo border - is one site in line to benefit from the new funding under the 'Pope for South Sudan' initiative. It will be able to train more teachers, nurses, midwives, farmers and community leaders.