Colleges receive around € 3.1 million and housewives receive € 1.6 million.
CONCOS said that this will ensure the survival of the Irish colleges and that they will now have the opportunity to offer courses next year.
Minister of State for the Gaeltacht Seán Kyne said the compensation package will cost slightly more than the Irish Language Learners Scheme each year.
The Irish Learners’ Scheme is a subsidy paid to housewives who provide accommodation for the students attending the summer colleges.
Speaking on RTÉ Raidió na Gaeltachta, Seán Kyne said that other businesses affected by the lack of Irish language courses this summer may be able to get help from Udaras na Gaeltachta or the Department of Business, Enterprise and Innovation.