The IAH will use the funding to assess diseases spread by insects such as Bluetongue and African Horse Sickness.
IAH director John Fazakerley said this funding will enable the institute to maintain its position as a world-leading centre for research into virus diseases of livestock and viruses that can transmit from animals to humans.
The IAH is one of eight research institutes of the Biotechnology and Biological Sciences Research Council (BBSRC). It is responsible for carrying out research on avian and livestock viral diseases and vector-borne viral diseases.
The cash boost, which was announced by Science Minister David Willetts, is part of a £250m grant from BBSRC and the Department for Business Innovation and Skills. The £250m investment will fund BBSRC's strategic investment in institutes involved in strategic programs.