The scheme will see the top five finishers in the FIA Formula 3 Championship share the fund to offset the rising costs of a Formula 2 seat.

The champion will receive €300,000 ($535,000 AUD), the runner-up €250,000 ($446,000 AUD), third place €200,000 ($357,000 AUD), while fourth and fifth will collect €150,000 ($268,000 AUD) and €100,000 ($179,000 AUD) respectively.

The prize is only awarded to drivers who move up to F2 the following year; if a recipient does not, the funds pass to the next eligible driver. The initiative takes effect from the 2025 season.

The new fund adds to the existing €300,000 ($535,000 AUD) Pirelli prize for the champion, giving the 2025 title winner a combined €600,000 ($1.1 million AUD) to support their F2 campaign.

Brazil’s Rafael Camara, who clinched this year’s F3 championship at Monza, is set to be the first driver to benefit from the enhanced funding.

FIA F3 CEO Bruno Michel said the prize fund is designed to ease the financial burden of progressing through the junior ranks.

“I am pleased to announce this million-euro fund, which will benefit the five highest-placed Formula 3 drivers, alongside the substantial prize offered by our partner, Pirelli, which goes to the Champion,” Michel said.

“It is vital to support emerging talent on their road to Formula 1.

Formula 3 is a fantastic training ground for these young racers to hone their skills to move up the pyramid, and this additional financial reward will help them to go even further in their efforts towards the pinnacle of motorsport.”

F1 President and CEO Stefano Domenicali welcomed the move as a key step in strengthening the sport’s talent pipeline.

“The Formula 3 one-million-euro prize fund is an important initiative that will further incentivise drivers and provide them with a very valuable and well-deserved reward for their success in the championship,” he said.

“The FIA Formula 3 Championship continues to be a vital part of the pyramid system, which provides the drivers with the essential technical, physical, and mental training to rise through the championships on their journey to the highest level of our sport.”

The funding responds to the escalating costs of F2, where a full-season budget is estimated between €2 million ($3.6 million AUD) and €3 million ($5.4 million AUD).

By easing the financial leap from F3 to F2, the prize fund aims to give young drivers a stronger chance to continue their climb toward F1.