The money, donated by the Evelyn and Walter Haas, Jr. Fund, is the largest gift for this type of scholarship ever at an American university.
The 2011 California Dream Act made undocumented immigrants eligible for privately funded college scholarships and state financial assistance. They are not eligible for federal financial aid.
The school said the money would help provide scholarships for nearly 200 students. Most of the scholarship recipients will be UC Berkeley students who came to the U.S. as children and are living in the country without legal permission.
The Associated Press contributed to this report.