In April 1999, the League received a bequest from the Lucille Lortel Estate requesting that a fund be established and maintained by the League to support The Lucille Lortel Grant with an award of $2,500 annually to an aspiring woman in any discipline of theatre who is showing creative promise and deserves recognition and encouragement. The awards have been given to Melanie Joseph, founder of the Foundry Theatre; Cara Reichel, founder of the Prospect Theatre Company; Mandy Hackett, founder of The Underwood Theater, Justine Lambert, Artistic Director of the Looking Glass Theatre and Melissa Silverman, Executive Director of 3Graces Theater Co. in 2007.

Each year the Lucille Lortel Committee visits theatre productions and makes an award to an aspiring woman who is showing creative promise and deserving of recognition and encouragement. Any League member may recommend a woman who is deserving of consideration for this award so that her work may be seen by the committee.