The CLÁR Programme provides funding for small-scale projects in designated rural areas that have experienced significant levels of de-population over a defined period. Since the programme was relaunched in 2016, it has supported a wide range of measures. Although the the type of project referred to by the Deputy is technically eligible under the Programme, the town in question is not located within a CLAR area and as such is not eligible for funding on that basis.
It would appear that this project could be eligible for funding under the Department of Transport's Active Travel Investment Programme or indeed the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media's Sports Capital Programme.