Appalachian Regional Commission under the knife in federal cuts
By Christina Lengyel | The Center Square
(The Center Square) – The Appalachian Regional Commission, an economic development partnership between the federal government and parts of 13 states including all of West Virginia, is poised to see a 93% reduction in funding with the “Big Beautiful Bill Act.”
While funds will continue through grants from previous federal legislation like the Infrastructure Investment and Jobs Act, advocates say the drop from $200 million to $14 million will hamstring its efforts to serve the people of Appalachia.
The commission represents 423 counties that it supports with grant opportunities and education efforts. It was first envisioned by President John F. Kennedy and brought into law by an act of Congress signed by President Lyndon B. Johnson in 1965.
The commission is largely focused on investments and research that help to build business, workforce, infrastructure, community and leadership in the economically struggling region. It is one of several regional commissions across the country.
In its 2025 funding proposal, the ARC asks for $200 million. The document cites progress made by work done to adhere with President Joe Biden’s Executive Order “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” a DEI program that’s targeted for cuts through the Department of Government Efficiency.
ReImagine Appalachia, a nonprofit organization representing a coalition of different organizations and individuals – including elected officials like Pittsburgh Mayor Ed Gainey – throughout the Ohio River Valley, is petitioning the government to reconsider the cuts to the ARC.
Gainey’s office declined to comment for this story.
“In recent years, Appalachia has built incredible momentum towards a multi-industry economy that provides good jobs that take good care of the communities around us,” reads the letter currently endorsed by 34 organizations in the region. “The ARC has been instrumental in driving forward this potential. Reductions to its programs pose a risk to innovative initiatives in workforce development, community revitalization, and American-made resilient energy.”
Appalachian states have struggled to balance the shift toward renewable energy with their historic reliance on coal and ample supply of natural gas. Some legislators, like those in West Virginia seeking to end tax credits to wind and solar plants, view the issue as an ultimatum, while others, like Pennsylvania Gov. Josh Shapiro, see an opportunity for “all of the above” energy policy.
Putting numbers to the ARC’s impact through energy projects and more, the letter reads, “FY2024 ARC grant funds attracted an additional $593.1 million in other project funding – an investment ratio of 2 to 1 – and $5 billion in non-project leveraged private investment – a ratio of 14 to 1. The ARC projects funded during FY2024 will create or retain an estimated 16,073 jobs and provide new skills training to an estimated 39,631 students and workers.”
Citizens Against Government Waste, a nonprofit committed to eliminate waste and mismanagement, says that regional commissions are redundant and lead to excessive congressional earmarks from representatives eager to enrich their districts. One example they cited was a $750,000 grant to open a Buc-ee’s location in Athens, Alabama. Buc-ee’s is a successful privately owned corporation.
Such opponents argue that the grants and opportunities overseen by specific regional commissions could be available nationwide. They say this would reduce costs from administrative overhead and prevent special interests from receiving the lion’s share of spending. CAGW claims that elimination of the commissions would result in an immediate savings of more than $287 million and a five-year savings of $1.4 billion.
The Center Square was unable to get in touch with representatives from the ARC, which is currently headed by former First Lady of West Virginia Gayle Manchin, who is the federal co-chair. The co-chair for the states is Maryland Gov. Wes Moore. Attempts to contact state and local leadership about the issue were unsuccessful.
