The fund announced on Tuesday that it will be giving each of the families £260,000, Billboard reports.
"The payments will ensure the families benefit from the phenomenal outpouring of public support following the attack," a press release from the fund reads.
The fund's chair of trustees, Councillor Sue Murphy, said in the statement that "The city and the world responded with such extreme kindness, generosity and solidarity in the aftermath of the Manchester Arena attack."
Billboard notes that people from around the world donated over £18.5 million, which included the proceeds from Grande's One Love Manchester benefit concert which took place on June 4, weeks after the abhorrent terrorist attack. In addition to the concert — which featured performances by Grande, Katy Perry, Justin Bieber, Chris Martin, Miley Cyrus, Imogen Heap, and others — Grande reportedly donated proceeds from her recordings of "One Last Time" and Judy Garland's hit "Somewhere Over the Rainbow."
In the fund's statement, Murphy added that the organisation will be carefully determining how to "distribute the rest of the funds." So far, Billboard reports that families have received approximately £72,000 and free counselling.
"This will be a complex and sensitive process as we will need to assess the long-term impacts of the attack," she said. "We will issue an update as soon as we know more."
Following the attack, Grande visited injured fans in the hospital and spent time with some of the families who lost a loved one. Each of the visits were emotional, and some of the fans shared their appreciation on Twitter.