The Irish Government Just Announced Cybersecurity Grants for SMEs. Here Is What You Need to Know.

On 18 February 2026, the Irish Government published Chapter 5 of its new Digital Ireland — Connecting our People, Securing our Future strategy. Buried within the language of digital transformation and national resilience is a commitment that every Irish SME owner should read carefully: the Government will provide targeted grant funding for SMEs and organisations with obligations under the EU NIS2 Directive, to help them improve their cyber resilience.

This is not a vague aspiration. It is a specific, published commitment from the Department of the Taoiseach, with a 2026 delivery timeline. For businesses that have been watching NIS2 obligations approach with concern about the cost of compliance, this is significant news.

Here is what the announcement contains, what it means in practice, and what you should be doing right now to position your business to benefit.

What the Government Has Actually Committed To

The Digital Ireland strategy sets out four specific cyber security commitments for 2026:

1. A new National Cyber Security Strategy — setting out a roadmap for Ireland's cyber resilience for the years ahead. This will be the overarching framework within which all other cyber security investment and policy decisions are made.

2. Targeted grant funding for SMEs and NIS2-obligated organisations — this is the headline commitment for Irish businesses. The grant is specifically designed to help SMEs and other organisations that fall under the NIS2 Directive meet their compliance obligations and improve their cyber resilience. Eligibility criteria and application processes have not yet been published, but the commitment is in writing.

3. Additional capacity for the National Cyber Security Centre (NCSC) — Ireland's NCSC has been under-resourced relative to the scale of the threat landscape. This commitment to expand its capacity means more guidance, more incident response support, and more resources available to Irish businesses navigating the compliance environment.

4. A new Cyber Security Research Centre of Excellence — a longer-term investment in Ireland's cyber security ecosystem, building the research and skills base that will underpin national resilience over the coming decade.

The strategy also commits to supporting the secure use of AI in the public sector through a National AI Cyber Risk Assessment, updating the National Cyber Emergency Response Plan, and increasing the capabilities of the Joint Cyber Defence Command.

You can read the full source document at gov.ie{:target="blank" rel="noopener noreferrer"}.

Why This Matters: The Financial Reality of NIS2 Compliance

The NIS2 Directive is now transposed into Irish law. It imposes legally binding cyber security obligations on a significantly broader range of businesses than its predecessor, NIS1 — including sectors that have never previously faced mandatory cyber security requirements.

For many Irish SMEs, the honest answer to "what does NIS2 compliance cost?" is: more than they budgeted for. Depending on your starting point, achieving and maintaining compliance can require investment in:

• Risk assessment and gap analysis
• Technical controls (MFA, network segmentation, endpoint protection, logging)
• Incident response planning and testing
• Supply chain security assessments
• Staff training and awareness programmes
• Governance documentation and board reporting

The Government's acknowledgement of this financial burden — and its commitment to grant funding specifically to address it — is a direct recognition that compliance is not free, and that smaller businesses need support to get there.

For context on the cost of not complying, see our article on the cost of non-compliance with NIS2. The financial penalties for NIS2 breaches are significant: up to €10 million or 2% of global annual turnover for "Important Entities", and up to €20 million or 4% of global annual turnover for "Essential Entities."

Free Resource: Download The Irish SME Cyber Survival Guide — 10 controls based on NCSC Ireland & ENISA guidance. Plain English, no jargon.

Are You in Scope for NIS2? The Sectors That Qualify for Grant Funding

The grant funding is specifically targeted at businesses with NIS2 obligations. This means the first question to answer is whether your business falls within the directive's scope.

NIS2 covers two categories of entity: Essential Entities and Important Entities. The distinction matters because it affects both your compliance obligations and the level of supervisory scrutiny you face.

Essential Entities include organisations in energy, transport, banking, financial market infrastructure, health, drinking water, wastewater, digital infrastructure, ICT service management, public administration, and space.

Important Entities include organisations in postal and courier services, waste management, manufacture and distribution of chemicals, food production and distribution, manufacturing (medical devices, electronics, machinery, motor vehicles), digital providers, and research organisations.

Critically, NIS2 applies based on size thresholds as well as sector. Medium-sized enterprises (50+ employees, or €10m+ annual turnover) in the above sectors are generally in scope. Some sectors have no size threshold — meaning even small businesses are captured.

Our NIS2 scope checker walks through the specific criteria for Irish businesses. For a detailed breakdown of what compliance actually requires, see NIS2 for Irish SMEs: Understanding Your New Cybersecurity Obligations and our comprehensive NIS2 compliance checklist.

What the New NCSC Capacity Means for Your Business

The commitment to expand the NCSC's capacity is significant beyond the grant funding. A better-resourced NCSC means:

More guidance and frameworks — the NCSC is the primary source of practical, Ireland-specific cyber security guidance for businesses. More capacity means more sector-specific guidance, more accessible toolkits, and more resources tailored to SMEs rather than large enterprises.

Stronger incident response support — when a serious cyber incident occurs, the NCSC provides national-level coordination and support. Expanded capacity means faster response times and more resources available to affected businesses.

Clearer NIS2 implementation guidance — one of the current challenges for Irish businesses is the lack of detailed, Ireland-specific guidance on exactly what NIS2 compliance requires in practice. A strengthened NCSC is better positioned to fill this gap.

More active threat intelligence sharing — the NCSC regularly publishes advisories about active threats targeting Irish businesses. More capacity means more frequent, more detailed, and more actionable intelligence.

The AI Cyber Risk Assessment: A Signal Worth Noting

The commitment to a National AI Cyber Risk Assessment for the public sector deserves attention from private sector businesses too. The Government's recognition that AI introduces new and distinct cyber risks — significant enough to warrant a dedicated national assessment — reflects a broader reality that Irish businesses are navigating.

AI-powered phishing attacks are already being used against Irish SMEs. Deepfake audio and video are being deployed in business email compromise attacks. AI tools are enabling attackers to automate reconnaissance and personalise attacks at scale. The Government's AI Cyber Risk Assessment will likely surface guidance and frameworks that are directly applicable to private sector businesses — watch for its publication.

Three Actions to Take Right Now

The grant funding details have not yet been published. But there are three things you can do today to position your business to benefit when they are.

1. Determine Whether You Are in Scope for NIS2

You cannot apply for NIS2 compliance grant funding if you do not know whether you are in scope. Use our NIS2 scope checker to get a preliminary assessment, then review the detailed criteria in NIS2 for Irish SMEs. If you are in scope, the clock is already running on your compliance obligations — grant funding will help, but it will not pause your legal obligations.

2. Conduct a Gap Assessment Against NIS2 Requirements

Grant funding for NIS2 compliance will almost certainly require you to demonstrate what you have already done and what you still need to do. A structured gap assessment — mapping your current security posture against the NIS2 requirements — gives you the baseline you need to make a credible grant application and to prioritise your investment. Our NIS2 step-by-step guide covers the key requirements in plain English.

3. Build a Prioritised Security Roadmap

The businesses that benefit most from grant funding are those that arrive with a clear plan: here is our current state, here is our target state, here is what we need to invest to close the gap. A vCISO can help you build this roadmap quickly and cost-effectively — see what to expect in your first 90 days with a vCISO and our guide to building a security roadmap. The ROI of a vCISO is particularly compelling in the context of grant-funded compliance work, where the cost of external expertise may itself be an eligible expense.

The Bigger Picture: Ireland Is Taking Cyber Security Seriously

This announcement is part of a broader pattern. The HSE cyberattack of 2021 cost the Irish state an estimated €100 million to remediate and exposed the personal health data of hundreds of thousands of citizens. NIS2 represents the EU's legislative response to the reality that cyber attacks on critical infrastructure and essential services are now a routine feature of the threat landscape.

The Irish Government's commitment to a new Cyber Security Strategy, expanded NCSC capacity, and SME grant funding is a recognition that cyber security is no longer a technical problem for IT departments — it is a national economic and security priority. For Irish SMEs, this creates both an obligation and an opportunity.

The obligation is clear: NIS2 compliance is a legal requirement, not a choice. The opportunity is equally clear: for the first time, there will be structured government support to help you meet it.

Related Reading

• NIS2 for Irish SMEs: Understanding Your New Cybersecurity Obligations
• Is Your Business Ready for NIS2? A Comprehensive Checklist
• The Cost of Non-Compliance: Why Irish SMEs Can't Ignore NIS2
• Navigating NIS2: A Step-by-Step Guide for SMEs
• The Cybersecurity Budget: How to Invest Smartly for Maximum Protection

Ready to Prepare Your NIS2 Compliance Plan?

The grant funding details will be published through official government and NCSC channels in 2026. When they are, the businesses that are best positioned to benefit will be those that have already started their compliance journey — with a clear gap assessment, a prioritised roadmap, and the documentation to support a credible application.

Book a free 20-minute strategy call with our vCISO team. We work with Irish SMEs across all NIS2-affected sectors to build practical, cost-effective compliance plans. We will help you understand your obligations, assess your current posture, and build the roadmap that positions you to take full advantage of the available grant funding.

Book Your Free Strategy Call

Source: Gov.ie — Invest: Cyber Security to support our digital journey{:target="_blank" rel="noopener noreferrer"}, published 18 February 2026._

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