It’s possible to get merit, but it will be school and award specific. D got in off WL at St Olaf with an art scholarship several years ago. They also met the rest of our need with need-based grants.
It will depend on the school and your specific situation. D was a strong art candidate, but not the highest academics - barely in mid-50% - and that likely factored into the WL decision (and the later admission with an art award).
I would think that if the school has defined thresholds for awards, those would be more likely to be awarded upon WL admission, but I don’t know that for sure.