Local radio stations could receive up to €250,000 a year in State funding under a multi-million euro support scheme.
Fianna Fáil has called for the establishment of a public service broadcast fund which would be paid for through a major clamp down on those who evade the TV licence fee.
Fianna Fáil's communications spokesperson Timmy Dooley said between €35m and €50m is lost every year from uncollected licence fees.
"Local stations have a contractual obligation to fulfil the 20% public service obligation to provide new and current affairs programming, but they are finding it increasingly difficult to find the funds to maintain a full-service newsroom," he said.
The private members' motion being debated in the Dáil tomorrow calls for the introduction of a fund by the end of September which would invest 25% of money raised through the increased collection of the TV licence fee into local radio.
"I think €10m initially would go a long way. We are saying 25% of whatever that fund might be," said Mr Dooley.
"We believe that the funding can come from a better collection of our national licence fee.
"As you know the Communications Committee last year did a body of work looking at the future funding of public service broadcasting and there are quite a few recommendations there.
While Mr Dooley said there have been a number of publicity campaigns to encourage people to pay the TV licence, he said "there hasn't been the kind of direct approach that is needed on the ground".