Minister for Justice Dermot Ahern has described as 'difficult' the decision to discontinue funding for Justice for the Forgotten.
The group representing victims of the Troubles has said it will cease to exist at the end of the month after attempts to secure alternative funding failed.
The Government has said it no longer has the resources to fund the organisation.
Speaking in Co Tipperary, Minister Ahern said the group had been given substantial funding since it was set-up.
However, he added that the time has come when the Government cannot give anymore funding.
Minister Ahern said it was a difficult decision, but has been taken as the Government faces a difficult situation with resources.
Victims said the decision to discontinue funding ignores the Good Friday Agreement, which states that it is essential to acknowledge and address the suffering of the victims of violence as a necessary element of reconciliation.
Justice for the Forgotten is the main liaison between victims and their families and the Historical Enquiries Team in Northern Ireland.
The group also acts as a contact point for families when dealing with gardaí reviewing various investigations.
It has also campaigned to have memorials commemorating the dead in locations where bombings have occurred, such as Monaghan, Dublin and Belturbet, Co Cavan.
