Tusla CEO Kate Duggan has said that the child and family agency "regrets sincerely" that it has been unable to meet statutory targets for special care provision.
However, at the Dáil Public Accounts Committee (PAC) this morning, Ms Duggan said Tusla was more confident it would be able to increase special care capacity in 2027.
She told politicians that the agency expects to deliver its service plan for 2026 within its allocated resources, adding that Tusla achieved cost savings of €112.7m this year.
Its budget for 2026 is €1.46bn - up €188m on last year.
"This is equivalent to more than 8.5% of our annual funded allocation and reflects Tusla's continued commitment to maximising the effective stewardship of public resources, and our commitment to ensuring that every euro spent by the agency delivers better."
However, she said the demand for placements for at-risk children remained very high, and "any further cost-containment actions" beyond measures already taken would "significantly impact frontline services and placements".
Ms Duggan added that this in turn would impact directly on services to the most vulnerable children in the State.
Politicians were told that Tusla is committed to increasing staffing levels to allow for additional special care beds to be opened.
Ms Duggan said the agency has implemented significant reform over the past three years including integrating services, moving them closer to communities they serve and more equal access to supports based on population and disadvantage levels.
"Our responsibility is to seek those pressures in a way that is both financially sustainable and firmly focused on the best interests of children," she added.
