The initiative was announced by the country’s international travel minister Hildegarde Naughton.
The ITAA said the fund will help travel agents throughout the country remain in business until viable trading properly resumes.
Pat Dawson, chief executive of the ITAA said the support "will, in turn, protect the Irish consumer".
"The ITAA has worked tirelessly with minister Hildegarde Naughton, minister Michael McGrath, and with officials from the Department of Transport to secure this financial support to protect the travel industry," he added.
"Many of our members are small family-run businesses located in towns and villages across the country.
"Consumers who book with a bonded, licensed Irish travel agent are guaranteed protection under the European Package Travel Directive. This protection is not present when booking ‘do-it-yourself’ holidays."
