The government has agreed to draft new laws allowing for the excavation of the former Tuam Mother and Baby Home in Co. Galway.
The legislation will also allow for the remains to be exhumed and DNA testing to be carried out to try and identify the babies.
It has been confirmed the Sisters of Bon Secours will pay €2.5m towards the cost, but the full cost could be up to €13m.
Children's Minister Katherine Zappone says the new laws are not specific to Tuam.
"What this means is that if we find that there are comparable burial practices associated with other institutions, this general scheme will provide the legislative basis on which we can intervene," she said.
"I should stress at this point that we do not have evidence of similar practices in other locations."