The Government has agreed to match up to €20 million over the next five years to endow the George Mitchell scholarship programme, which allows young Americans to pursue graduate studies at universities in both parts of the island, writes Denis Stauntonin Washington
Trina Vargo, president of the US-Ireland Alliance which runs the scholarships, said her group hoped to raise at least €40 million to ensure that the programme was permanently funded, like the Rhodes Scholarships which sent US students to Oxford.
"This is the largest commitment the Irish Government has ever made to a US organisation," Ms Vargo said.
"We are honoured by this support and encouragement, which is evidence of the Government's understanding of the many changes both Ireland and Irish America must address in building a future relationship based on contemporary realities."
Established in 1998 and named after the former US senator who helped to broker the Belfast Agreement, the Mitchell scholarships have sent 80 US students to study in Ireland since then.
Minister for Finance Brian Cowen said that programmes such as the Mitchell scholarships were increasingly important in maintaining the close relationship between Ireland and the US.
The scholarships, which also receive funding from the US Congress and state department, have attracted ever greater private donations from Irish benefactors.
Ms Vargo said that two fundraising dinners in Dublin recently raised almost €5 million, which included $1 million commitments over the next five years from Pat and Teresa Mooney and Bernard and Moira McNamara.