The funding, which forms part of the National Development Plan allocation for water services, will be advanced from the Central Fund to Uisce Éireann under Section 37 of the Water Services (No. 2) Act 2013 and will be dedicated exclusively to increasing water services capacity for housing development.

The investment will be directed towards two targeted programmes:

Welcoming the decision, Minister for Public Expenditure, Infrastructure, Public Services Reform and Digitalisation, Jack Chambers TD, said:

“This Government is committed to ensuring that critical infrastructure is in place to support the delivery of housing at the scale required. Today's decision provides €2 billion in dedicated funding to expand water and wastewater capacity, helping to unlock housing development in communities across the country.

“The investment demonstrates the Government's determination to remove infrastructure constraints that can delay housing delivery, while ensuring strong governance, accountability and value for money in the use of public funds.”

The Tánaiste and Minister for Finance, Simon Harris TD said:

“We know that the provision of water and waste-water infrastructure is absolutely critical to driving house building the length and breadth of the country.

“Today’s decision by Government to provide €2 billion in dedicated funding is about tackling that challenge head on and ensuring strong accountability for delivery.

“This record investment will be central to unlocking the supply of homes, supporting the growth of our communities and ensuring our critical infrastructure delivers real results for our people.”

Minister for Housing, Local Government and Heritage, James Browne TD commented:

“As part of the revised National Development Plan, my Department has secured an unprecedented allocation of over €12 billion for water services and water quality out to 2030. Of this, 95% is being allocated to Uisce Éireann, and this includes the €2 billion approved by Government today for accelerating housing delivery across the country.

“This additional funding will be spread across cities, towns and our rural communities. This is being done through Uisce Éireann’s accelerated growth and small towns and villages programmes.”

To ensure appropriate oversight and governance, a Memorandum of Understanding (MoU) will be agreed between the Ministers for Finance, Public Expenditure, Infrastructure, Public Services Reform and Digitalisation, and Housing, Local Government and Heritage, together with the Chief Executive Officer and Board of Uisce Éireann.

The MoU will set out the conditions attached to the funding, including enhanced reporting requirements and regular progress updates on programme delivery.

Under the agreed funding profile, Uisce Éireann will draw down the funding between 2027 and 2030, with expenditure aligned to an approved annual schedule. The funding may only be used for the Growth Investment Programme and the Small Towns and Villages Growth Programme and cannot be redirected to other purposes without ministerial approval.