The money will go toward upgrading a failing heating system, which sometimes leaves portions of the building below 50 degrees in the winter.
The heating system isn't the only problem with the facility however.
Corrections Department officials have also found problems with the roof, windows and sidewalks.
They're problems Stanley prison warden Dan Benik says could not have been anticipated prior to the state's purchase of the facility.
"It's like a small city, when you have fifteen hundred people moving around the wear and tear on the building and on the systems is significant and so there are issues that have to be addressed."
The Stanley prison was bought "as is" by the state from a private owner back in 2001.
Since then the state has spent more than $7 million on the building for other upgrades.