The 30 Rock star wrote the cheque out to educators at New York University's Tisch School of the Arts, where Baldwin graduated with a Bachelor's Degree in Fine Arts in 1994.
The money will be put towards the Alec Baldwin Drama Scholarship Fund, as well as the Talent Identification Process, which provides support to promising students with financial problems.
A statement from the star reads, "At a time when funds for higher education appear to be more difficult than ever to access, it's my great pleasure to do what I can to bring the best possible candidates into the Tisch programme, a programme which I believe is the best in the country."
And Dean Mary Schmidt Campbell couldn't be more grateful, telling The Hollywood Reporter, "Alec's generous and transformative gift enables us to think about arts recruitment in the same way as a top athletic programme scouts talent, providing scholarship support to the most exciting young voices, who will in turn become the next generation of leaders in their fields. His talent and generosity are examples for all of our students."
This is the second donation Baldwin has made to the college - he made a gift of the same amount in 2009.
He will return to the school next year (13) to teach a drama course.