A Commission of Investigation into the 76-year history of the facilities is currently drawing to a close.
The confidential testimonies will be sealed for 30 years, but 180,000 people have signed a petition calling for that to be scrapped.
The President's decision to sign the new bill has been welcomed by West Cork TD Holly Cairns which says the unusual step by the President means that any citizen can now challenge the provision of the bill in the future
However Clodagh Malone, who was born in a Mother and Baby Home, says it will be a disgrace if the records are kept under wraps.