Utah Football posted on Twitter Tuesday that the money will be awarded to "a football student-athlete who exemplifies the inspiring qualities that Jordan displayed through his work ethic, positivity & perseverance through adversity."
Jordan died at a Dallas-area hospital around 10:45 p.m. after accidentally shooting himself on Christmas Day.
University officials announced Jordan's death on Saturday, Dec. 26.
A celebration of life will be held in Texas on Wednesday.
Jordan was named the Pac-12 Newcomer of the Year by the Associated Press and also earned All Pac-12 second team honors. He ran for 597 yards and scored six touchdowns in just five games. Jordan averaged 7.2 yards per carry, which was 10th best nationally, according to NCAA.com.