"I am delighted and honored to do what I can to keep Heath's legacy alive," Law, 36, told People. "He was a brilliant actor and a wonderful man and it is only fitting that this scholarship has been developed in his name."
The Australians in Film Heath Ledger Scholarship is given to an up-and-coming Aussie actor looking to make it in America. Oliver Ackland won last year's $10,000 prize, and this year's finalists will be announced in February.
Law took over Ledger's rol in "The Imaginarium of Doctor Parnassus" after Ledger's fatal overdose in 2008.