Appalachian Regional Commission
Purpose
The Appalachian Regional Commission is a federal-state partnership to help the Appalachian
region reach socioeconomic parity with the rest of the nation.
History
The Appalachian Regional Commission was created by the Appalachian Regional Development
Act of 1965. The 13 member states are Alabama, Georgia, Kentucky, Maryland, Mississippi,
New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West
Virginia. ARC serves 420 counties and 25 million people across all of West Virginia and parts
of the other 12 member states.
The commission itself comprises the governors of the 13 member states and a federal co-chair
(a presidential appointment subject to Senate confirmation). The other co-chair is selected
annually by the governors from within their own ranks.
ARC has established four priority goals for the region: 1) increase job opportunities and per
capita income; 2) strengthen the capacity of the people to compete in the global environment;
3) develop and improve infrastructure; and 4) build the Appalachian Development Highway
System to reduce isolation.629 In order to achieve these goals, the commission seeks to
coordinate all available federal funding to provide leverage for local government and private
investment. Grants are awarded for priority regional activities such as reforestation, green
energy, food-system development, and community-based philanthropy.
The ARC program was reformed by major legislation in 1975, 1998, and 2002. Of these, the
Appalachian Regional Development Reform Act of 1998 was the most comprehensive. The act
divided ARC counties into three categories—distressed, competitive, and attainment—and
placed a 30 percent federal match cap on projects in competitive counties. ARC assistance to
attainment counties was prohibited, limits on federal matches for other types of projects were
instituted, and certain ARC programs were repealed. Finally, the 1998 Reform Act further
adjusted the commissionÂ’s decision-making process (a major element of the 1975 reform).
Another significant development came in 1998 with the passage of the Transportation Equity
Act for the 21st Century (TEA-21), which moved funding for the ADHS from the General Fund
(through the annual ARC appropriation) to the Highway Trust Fund.