The HSE has told a facility providing services to people with intellectual disabilities to make cutbacks under the Haddington Road pay deal.
The HSE said St Michael's House, which provides services for over 1,600 people in Dublin and Navan, needs to reduce its costs for overtime and agency staff.
St Michael's has written to the families of its clients saying it must make cutbacks to a range of services after a further cut to its budget for the second half of this year.
Local TD Finian McGrath says the government has other options available to keep the facility running.
"It's just not acceptable. There are many other ways to fund these services," he said.
"Adults with an intellectual disability should not pay the price for the actions of bankers, politicians, and government ministers."