(Watch last week's report on the left)
Firefighters Jeff Brozich and Dan Garvey II only need to pass return-to-work physicals before they rejoin their colleagues, restoring the department's staff to 32.
The two firefighters received pink slips last year as a result of budget cuts.
"It's the first good news in a long time," Mayor Edward Swanson said Monday after the city council voted to accept the grant.
"We'll bring them back as quickly as we possibly can," Chief Kevin Scheid told the newspaper.
Firefighters Matthew Dwyer, John Morgan and Kevin Powers filled out the application for the federal grant.
"If we know there's something out there to help us in the field, we go after it," Morgan said after receiving the good news.
"The layoffs really affected how we operate," Powers said. I don't think the quality of service has been there since they were laid off in July."
Last week city officials were unsure of whether they would accept the grant due to strings attached to the grant including requiring the city to keep its current staffing level over two years.
City Councilwoman Margene Scott told the newspaper that it could apply for a waiver if its financial situation worsens.