The Newtowncunningham-based woman, well known for her work with Donegal Action for Cancer Care, will go forward as an Independent candidate for Donegal North East.
But Ms Holmes, who is currently chairperson of DACC, says she will not use the name of the cancer action group to run her campaign.
Ms Holmes says she took the decision to stand to ensure that health issues remain firmly on the agenda – both locally and nationally.
“I have had serious concerns that the real issues of the people of Donegal are not being listened to – even at local level.
“In the middle of all this changing politics, we must ensure that our health issues do not get lost. We must protect the likes of Letterkenny General Hospital and the Donegal Hospice.
“That is the reason I am standing, to protect and ensure these facilities get better,” she said.