An additional €850,000 from savings in the Department of Transport, Tourism and Sport will be allocated to the Rural Transport Programme in 2016.
This brings the total allocation for 2016 to over €14.5m, which is an increase of 20% on last year.
The allocation for rural transport in 2017 represents an almost 20% increase on the original funding allocation for this year.
Minister for Transport, Tourism and Sport, Shane Ross says it gives recognition to the value and benefit of rural transport to communities, in particular for older people and those vulnerable to social isolation.
He carried on by saying this will enable a continuation of the process already underway of making improvements to existing services and developing new routes.
13 additional services have already been provided in Kerry, Wexford, Leitrim and Roscommon, ensuring better connections to and between towns and destinations such as shops, hospitals and community facilities this year.
Deputy Michael Healy-Rae says he welcomes the announcement and he says that it is great for Kerry and all of rural Ireland.