Tánaiste Leo Varadkar has announced a €2m extra grand for businesses in Donegal affected by additional restrictions.
The news comes after Donegal was placed into Level Three of the Living with Covid plan.
The change in status means that pubs and restaurants in Donegal must close indoor dining and residents face restrictions on household visitors, gathering sizes and sporting events.
Acting Chief Medical Officer Dr Ronan Glynn is to discuss the increased incidence rates of Covid-19 in Co Donegal with his Northern Ireland counterpart as well as reducing travel between the two jurisdictions.
The county now has the highest rate of Covid-19 in the country, with the Stranorlar/Lifford electoral area recording an incidence rate of 336 cases per 100,000 of the population.