The funding follows a campaign to restore support for a sport that has huge potential for growth, particularly among young people from black and ethnic minority communities in inner-city areas.
Basketball had a four-year budget of £8.5m until last year, when UK Sport withdrew the money because British teams are not considered medal contenders for the next two Olympics.
The funding cut came just a year after Team GB fielded a team at the London Olympics. With UK Sport committed to funding only sports with realistic medal prospects at the next two OIympics, basketball lost out.
There is such talent in this country in our inner cities and we really need to provide it with the opportunity to reach that talent, you only need to walk around these streets in Brixton to see that, the game is loved.
We will provide our partners and individuals with funding, training, equipment, resources & advice to remove barriers & inspire individuals to play, volunteer in and develop themselves personally through basketball and build lasting partnerships with our funders and partners.