Up to 20 families whose homes are badly damaged by defective mica blocks are to receive grants of €15,000 as well as €5,000 storage costs.
The move has led to the cancellation of a protest planned for today at the Carndonagh Public Services Centre.
Donegal County Council will begin distributing those grants from next week.
It follows a move by Minister for Housing Darragh O’Brien after a meeting with the Attorney general on the issue.
Those involved in the Mica campaign have broadly welcomed the move.
Campaigner Paddy Diver said the grants were welcome by people whom he said were in dire straits saying nobody would begrudge them the money.
Mica Action Group chairperson Lisa Hone said that while they did not have all the details it was “a move in the right direction”.
“Hopefully the information needed to qualify for this (the grants) will already be with the council. One would hope it is almost like a no-brainer.
“We want to see the payments made to the homeowners this side of Christmas. Thast’s what we need to see,” she said.