The money is going to 16 different events across the country - with Dublin's St Patrick's festival receiving the largest portion of the pot at one million euro.
Four events in Donegal are being supported - €45,000 has been allocated to the Earagail Arts Festival. In addition to the main 17 day event in July, the Earagail Arts Festival vision for 2017 is as "A Festival of Festivals"
It will see the organisation assist in the development of 4 additional festivals in off-peak seasons across County Donegal including the Letterkenny Traditional Week in January, Distorted Perspectives in April, the Donegal Bay & Bluestacks Festival in October and Creative Frontiers in December.
Elsewhere in today's allocation - €40,000 has been granted to the Rory Gallagher Festival in Ballyshannon and €20,000 goes to the Sea Sessions in Bundoran.
The Donegal Rally has received an allocation €15,000