The MDP is now the largest party with more than 50,000 members.
The funds were withheld over a leadership dispute.
The Jumhooree Party leader was urged to leave the ruling coalition.
The PPM congress in September where Yameen was elected president was legitimate, the Supreme Court ruled.
The new party is to be named People's National Congress.
The Elections Commission was asked to deduct from state funds allocated to PPM.
The PPM has been fined US$4,860 for accusing Elections Commissioners of bribery and vote rigging.
The ruling party is seeking a police probe of its allegations.
The allegations of vote rigging have been widely ridiculed on social media.
The company that printed ballot papers alleged its staff were offered bribes for false testimony.
The Elections Commission is accused of vote rigging at nightly protests by the ruling party.
A commissioner has left the country after threats, EC chief Ahmed Shareef said.
The ruling party is alleging fraud over a leaked audio of EC chief Ahmed Shareef.
An MDP office was vandalised and used oil was thrown into PPM meeting halls.
The opposition accused President Abdulla Yameen of 'running scared' of the election.
Contrary to the PPM's claims, a bill to reverse the proposed decriminalisation of bribery was submitted on Tuesday.
Yameen challenged the opposition candidate to answer to the alleged "betrayals" of the MDP government.