The $1.35 million will come from surplus cash but covers only a fraction of the archdiocese's legal bills so far, which total close to $14 million.
The legal bills are far greater than the $4 million the archdiocese offered survivors of sex abuse before filing for bankruptcy on Jan. 4, 2011.
Lawyers have asked the appeals court to remove a judge's decision, saying that the concern was for "his endorsement of the religious faith."
There are still major hurdles before the Milwaukee archdiocese's bankruptcy plan is presented for a vote by claimants, of whom 575 are survivors of sexual abuse.
The claimants' lawyers also asked the bankruptcy judge not to rule on the plan until an appeals court rules on the status of a hotly contested cemetery fund.