The $7.1 million grant will allow the department to hire up to 70 new firefighters.
The money will be spread out over the next two years and in 2013, the city will be required to fund the staffing levels.
The new recruits will join the department through several academy classes.
Last year the city threatened to lay off firefighters as it faced a $83 million budget deficit. While layoffs were avoided, 80 firefighters opted for retirement during the uncertain times.
The staffing shortage forced three fire companies to close.
Fire Chief John Centanni said the grant should allow the department to re-activate the companies.
"We deserve it. We need it and now our manpower is going to be back up where it should be," Union President Chuck West told the newspaper.
