The previously approved budget was €1.73 billion.
Health Minister Wicklow TD Stephen Donnelly gave an update to Cabinet this morning.
Ministers approved an additional €500 million to the cost of the National Children's Hospital.
The main new hospital building will deliver: 300 individual inpatient beds, 60 critical care beds, 20 Child and Adolescent Mental Health Services beds, and 93 day-beds.
Initially back in 2017 - the facility was to cost in the region of €980 million.
There have been multiple cost overruns since construction began, and it's set to be the most expensive hospital in the world.
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