The government has approved a mechanism to advance €2 billion in capital to Uisce Éireann to expand drinking water and wastewater capacity and help deliver 300,000 new homes by 2030. The ring-fenced funding, provided from the Central Fund under Section 37 of the Water Services (No. 2) Act 2013, will be dedicated exclusively to increasing water services capacity for housing.

Of the total package, €1.7 billion will support the Growth Investment Programme to add capacity in 72 settlements where upgrades can unlock significant housing development, and €300 million will fund the Small Towns and Villages Growth Programme for communities with populations under 2,000, helping to facilitate rural and regional growth.

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."

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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."

James Browne TD, Minister for Housing, Local Government and Heritage, said: "Timely delivery of water and wastewater services is critical to the delivery of homes. When we talk about getting housing moving at pace and at scale, water is essential. This commitment is significant in unlocking sites around the country for homes, there can be no doubt about that.

"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."

Oversight will be set out in a Memorandum of Understanding between the Ministers for Finance; Public Expenditure, Infrastructure, Public Services Reform and Digitalisation; and Housing, Local Government and Heritage, and Uisce Éireann's Chief Executive Officer and Board. The MoU will include conditions such as enhanced reporting and regular progress updates on delivery.

Uisce Éireann will draw down the funding between 2027 and 2030 in line with an approved annual schedule. The money may be used only for the Growth Investment Programme and the Small Towns and Villages Growth Programme and cannot be redirected without ministerial approval.

The decision reinforces the government's wider National Development Plan commitment to invest €12.2 billion in water services infrastructure, supporting housing delivery, regional development and sustainable economic growth across Ireland.