Local and independent radio stations will be bailed out with funding of €2.5m.
The money is being re-purposed from the Sound and Vision scheme to help mitigate against falling advertising revenues.
It had already been announced that the Broadcasting Levy would be waived for the first six months of the year, which is worth €1m.
Communications Minister Richard Bruton says the BAI will decide what radio stations can spend the money on.
Mr Bruton says this is in recognition of "the significant and immediate financial impact" on the sector
He added that it was important that communities continue to get "reliable information locally".
"Our local and independent radio stations have a crucial role to play as we respond to the Covid-19 pandemic," he said.
"I have asked the BAI to report to me on the impact of these measures and the Government-wide actions, on independent radio and to keep me updated on the financial well-being of the sector in general in the current environment."