The Government has allocated €10 million to revitalise 200 towns and villages throughout Ireland.
The funding means every county will receive around €380,000 to carry out on work in areas which have been neglected.
However, while Fine Gael welcomed the announcement, Sinn Fein said the amount of money is an "insult to local authorities".
Sinn Féin Seanad spokesperson on Rural & Regional Affairs Senator Trevor Ó Clochartaigh said: "A proper review of rates and upward only rents, retention of existing schools, doctors' surgeries and transport services are key to persuading people to remain in small towns and villages and to contribute to the local economy.
"The government need to be bringing an action plan forward in that regard such as Sinn Féin's 'New Deal for the West' proposal which takes a comprehensive look at what is really needed to maintain and revitalise rural towns and villages."
Fine Gael Mayo Senator, Michelle Mulherin, said: "This fund is available to Local Authorities to support the revitalisation of rural towns and villages across Ireland. In total €380,000 will be available to Mayo and I urge Mayo County Council to apply for the full allocation of funds available, in order to ensure that communities and businesses in Mayo can benefit fully from this initiative.
"This is a welcome step to help towns and villages in rural Ireland."
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