The club had bid for funding under the Regional Sports Capital grants.
Minister McHugh said: “I am delighted to announce that Letterkenny Tennis Club has been awarded €53,500 in Government funding today.
“The club has ambitious plans to expand and enhance their site and to become a centre of excellence for the entire region, not just Donegal.
“I want to congratulate everyone associated with the tennis club in Letterkenny and wish them future success on and off the court.”
The Donegal TD said the Government is committed to expanding financial support to all sporting organisations here in the county and nationally in the time ahead.
“Four weeks ago I announced just over €2M to 71 clubs across Donegal and in recent weeks we have provided half a million euro for equipment for youth groups,” he said.
“All these organisations are run by volunteers who do an incredible amount of work for their communities and it’s important that we in Government continue to provide significant financial support. I want to thank Sports Minister Brendan Griffin and Cabinet colleague Shane Ross for this latest award to Letterkenny Tennis Club.”