Childcare providers have said that many services like crechés and playschools may be forced to shut down or choose not to reopen unless they are given better funding.
Créches and schools have been closed since early March and the possibility of their reopening lies in decisions that are to be made by government Ministers.
Seas Suas, a body that represents private sector childcare providers, said many creches and childcare facilities will be forced to close or choose not to reopen unless the Government agrees to more financial support.
The chair of Seas Suas, Regina Bushell, said the Government's response to the crisis "continues to fail to grasp the financial fundamentals that are at the core of the problem".
She said: "Two previous attempts have collapsed and unless there is a change in mindset, we will have a third collapse.
"This is a cashflow crisis, not a capital one. Safety concerns, while complex, can be addressed. But no amount of handwashing or PPE can change the fact that as little as one in five children will return.
"Despite having fewer children on premises, providers will still need to meet their fixed costs, such as rent and mortgage repayments, and in addition pay for new costs like PPE and daily additional deep cleans."
Earlier this month the government was forced to cancel a childcare scheme proposed to help healthcare workers due to a lack of up-take from providers.
Minister for Children, Katherine Zappone is to bring proposals to Cabinet today about plans to reopen childcare facilities across the country in phase 3 which begins on June 29.
Frances Byrne, director of policy with Early Childhood Ireland, said "the very future of the childcare sector is at stake, and the decisions made in today's Cabinet meeting must take that into account.
"We need realistic solutions from government, which support quality experiences for children, safety for staff and which take account of the long-term sustainability of a vital sector."
Byrne explained that if a solution is found involving reduced numbers of children in these services or reduced hours, that they are expecting the government to create a form of financial aid to help bridge the gap reductions would make in the services funding.
