The money will also go toward exchanges with foreign conservatories for students, faculty, and ensembles, and toward Internet broadcasts of the school's events.
The Yale School of Music currently has 211 students, and tuition costs $23,750 per year. Free tuition will begin next year.
Lileana Blain-Cruz directs the new production, opening April 23.
The Cuban-born composer is this season's Debs Composer's Chair.
The cast is led by Bryonha Marie and Nathan Gunn, with Tony winner Ted Sperling at the baton.
The season, opening September 21, will include 58 ballets across 21 weeks of performances.
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