All government funding to Scouting Ireland has been suspended until the Board of Directors resigns.
Minister Katherine Zappone made the decision after the board voted to re-instate chief scout Christy McCann as the chair of an upcoming emergency meeting.
It comes amid continuing governance concerns at the scouting group.
Scouting Ireland's funding had previously been held back after concerns over how the organisation handled an allegation of sexual assault in 2016, which was in relation to an incident which allegedly took place in 2009.
A full independent investigation was launched to look into the handling of the matter by senior members of the organisation.
Mr McCann temporarily stepped down "in order to give adequate time to bring our investigation to a conclusion".
Scouting Ireland had its funding restored temporarily in June after it committed to implementing the recommendations of the review.
However, Minister Katherine Zappone says the board now needs to step aside.
Minister Katherine Zappone says she’s immediately suspending funding for Scouting Ireland until the board of directors steps down over reinstatement of Chief Scout Christy McCann pic.twitter.com/fKK1IMGLb0
— Sean Defoe (@SeanDefoe) September 27, 2018
She said: "I have decided to today that funding of Scouting Ireland will be suspended for as long as the current board of directors remains in place.
"I was very concerned to learn of recent events, particularly the vote taken at a board meeting on Saturday 22nd September to reinstate Chief Scout Christy McCann."