Appalachian Area Development

To help the regional economy become more competitive by putting in place the building blocks for self-sustaining economic development, while continuing to provide special assistance to the Region's most distressed counties and areas.

This program focuses on activities which support ARC's mission
to innovate, partner, and invest to build community capacity and strengthen economic growth in Appalachia.

Activities funded must advance ARC's strategic plan.

Specific program goals are: (1) Invest in entrepreneurial and business development strategies that strengthen Appalachia's economy; (2) Increase the education, knowledge, skills, and health of residents to work and succeed in Appalachia; (3) Invest in critical infrastructure?especially broadband; transportation, including the Appalachian Development Highway System; and water/wastewater systems; (4) Strengthen Appalachia's community and economic development potential by leveraging the Region's natural and cultural heritage assets; and (5) Build the capacity and skills of current and next-generation leaders and organizations to innovate, collaborate, and advance community and economic development.Specific objectives were developed for each goal.

Grants are made either directly by the Commission or grants may supplement other Federal grants.
Related Programs

Examples of Funded Projects

Fiscal Year 2016: No Current Data Available Fiscal Year 2017: No Current Data Available Fiscal Year 2018: No Current Data Available

Agency - Appalachian Regional Commission

Office - See Regional Agency Offices.
Website Address

Selected Recipients for this Program

RecipientAmount Start DateEnd Date
Jefferson, County Of $ 203,000   2022-01-012024-12-31
Pike County Health Department $ 485,676   2022-01-012024-12-31
Oak Ridge, City Of (inc) $ 1,000,000   2021-10-012024-12-31
East Liverpool, City Of (inc) $ 250,000   2021-12-102024-12-09
Friends-recovery-de Otsego $ 500,000   2021-12-012024-11-30
Workforce Solutions For North Central Pennsylvania Inc $ 500,000   2021-12-012024-11-30
Prisma Health-upstate $ 500,000   2021-12-012024-11-30
Pennsylvania Organization For Women In Early Recovery $ 500,000   2021-12-012024-11-30
Kentucky Rural Health Information Technology Network, Inc. $ 500,000   2021-11-152024-11-15
Dungannon, Town Of $ 500,000   2021-11-012024-10-31

Program Accomplishments

Fiscal Year 2016: 22,293 businesses and households with improved infrastructure 18,702 jobs created or retained 46,513 students, workers and leaders with improvements 4,757 businesses strengthened 357 communities with enhanced capacity. Fiscal Year 2017: 20,000 jobs created or retained 22,000 students, workers, and leaders with improvements 22 businesses and households with access to improved infrastructure 2,500 businesses created or strengthened 250 communities with enhanced capacity. Fiscal Year 2018: No Current Data Available

Uses and Use Restrictions

The grants may be used for providing supplemental funds under Federal grant-in-aid programs.

To be eligible for special basic grants, projects must be of high priority in the State's Appalachian development plan and be either of critical importance to a phased investment and development program for a multicounty area, or of unusual economic benefit to such area.

Refer to 'General Provisions for Area Development Program' of the Appalachian Regional Commission Code and ARC Project Guidelines for additional use restrictions.

Also, please see

The Appalachian Regional Commission awards grants and contracts from funds appropriated to the Commission annually by Congress.

At least half of ARC's Area Development grant funding is directed to projects that benefit counties and areas in the Appalachian Region designated by ARC as economically distressed.

Most program grants originate at the state level.

Potential applicants should contact their state ARC program manager to request a preapplication package.

Eligibility Requirements

Applicant Eligibility

States, their subdivisions and instrumentalities and private nonprofit agencies.

Beneficiary Eligibility

State, local and not for profit organizations.


Any finding, report, certification, or documentation required to be submitted to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the basic Federal grant-in-aid program shall be accepted by the Federal Co-chairman with respect to a supplemental grant for any project under such program. Projects must conform to the ARC Code, the ARDA Act, the State Appalachian Plan and annual State Strategy Statement. The Appalachian State Development Plan and the annual State Strategy Statement must be submitted by the Governors and approved by the Commission. Costs will be determined in accordance with OMB Circular applicable to the grantee. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

The State Alternate's Office is the coordinator for Appalachian investments.

Preapplication conferences with the Appalachian local district director or the State Alternate's Office can determine within a few weeks if the project can be related to the State Appalachian development plan.

The State Alternate's Office will provide guidance on specific problems and technical assistance in preparation of applications.

An environmental impact statement may be required for this program, depending on the basic Federal grant-in-aid program being assisted.

The standard application forms as furnished by the Federal agency and required by OMB Circular No.

A-102 must be used for this program.

Only infrastructure projects require an environmental review.

Please see 40.



An environmental impact statement is required for this program.

This program is excluded from coverage under E.O.


Application Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Applications must be submitted and have the approval of the State member of the ARC. All proposed projects must conform to the State Strategy Statement submitted annually. Guidelines and forms for funding Appalachian development projects are available from the local development district director and the State Alternate's Office. A letter of transmittal signed by the State member and an executed ARC Form 1 may be required with the submission (contact individual State Offices as appropriate).

Award Procedures

Upon determination that the State approved project is eligible within a Commission approved Appalachian State Development Plan and Strategy Statement, the Federal Co-Chairman determines that the project satisfies all Federal requirements. If a basic Federal agency will administer the project it is then notified and will disburse the grant funds when appropriate. The ARC notifies Congressional Offices and the Office of the Governor of grant awards.


Contact the headquarters or regional office, as appropriate, for application deadlines.


Appalachian Regional Development Act of 1965, Public Law 89-4, as amended, 40 U.S.C. 14101-14704.

Range of Approval/Disapproval Time

From 30 to 60 days after the receipt of the application at the Commission.





Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program. Matching Requirements: Generally grants are limited to 50% of project costs. For projects in counties designated as At Risk, this limit can be raised to 70%, and in economically distressed counties, it can be raised to 80%. For projects in counties designated as competitive (those that are approaching national economic norms), funding is usually limited to 30% of project costs. Funding is usually not available for projects located in counties that have attained or exceeded national economic norms. If otherwise eligible for funding, projects involving construction assistance for housing under the Appalachian Regional Development Act (ARDA) (40 U.S.C. 14503) cannot exceed 10% of total project costs regardless of location. The ARC Code and 'Appalachian Regional Commission Project Guidelines' furnish details. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Assistance is provided until completion; funds are transferred to the basic Federal agency and disbursed as appropriate. ARC reserves the right to withdraw grants for projects not under contract within 18 months of approval. See the following for information on how assistance is awarded/released: Generally, most funds are awarded on a quarterly basis. Grant monies are released in a timely fashion through coordination with the applicant.

Post Assistance Requirements


No program reports are required.

No cash reports are required.

Grantees of non-construction projects submit quarterly reports outlining progress throughout the award period.

Grantees of non-construction projects submit quarterly expenditure reports along with their progress reports.

Grantees of non-construction assess performance in their final closing report.

Performance is measured against estimated projections in the initial application.


In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. OMB Circular requirements.


Records as required by the basic Federal agency. Under the total audit concept, audits will be made on an organization-wide basis (rather than grant-by-grant) under GAO guidelines, Standards for Audit of Governmental Organizations, Programs, Activities and Functions, and for programs covered by A-102, Attachment P.

Financial Information

Account Identification



(Project Grants) FY 16 $84,529,632; FY 17 Estimate Not Available; and FY 18 Estimate Not Available

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

'The Appalachian Regional Commission Code' (limited distribution); 'Appalachian Regional Commission Project Guidelines' (limited distribution); applicable State Appalachian Plans and Guidelines; Performance and Accountability Report, no charge.

Information Contacts

Regional or Local Office

See Regional Agency Offices.

Headquarters Office

Jill Wilmoth 1666 Connecticut Ave NW Suite 600, Washington, District of Columbia 20009 Email: Phone: 202-884-7668

Criteria for Selecting Proposals


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