Appalachian Regional Commission faces 93% budget slash under new bill
The Appalachian Regional Commission (ARC) faces a sharp funding cut under the proposed Big Beautiful Bill Act. Its budget will drop from $200 million to just $14 million—a 93% reduction. The move threatens programmes supporting 423 counties across the economically struggling Appalachian regions.
The ARC, led by former West Virginia First Lady Gayle Manchin and Maryland Governor Wes Moore, has long focused on business growth, workforce training, and infrastructure in the Appalachian mountains. Critics, however, argue that regional commissions like the ARC waste taxpayer money through redundancy and excessive earmarks.
Founded in 1965, the ARC provides grants, education, and research to boost local economies in the Appalachian regions. In its 2025 funding request, the agency highlighted progress in meeting President Biden’s Executive Order on racial equity and underserved communities. Last year, its grants leveraged an extra $593.1 million in public funds and $5 billion in private investment, creating or retaining over 16,000 jobs in the Appalachian regions.
Opposition to the ARC’s funding comes from groups like Citizens Against Government Waste. They claim eliminating regional commissions could save $287 million immediately and $1.4 billion over five years. The nonprofit ReImagine Appalachia has since launched a petition to reverse the cuts, pointing to the ARC’s track record of job growth and community development in the Appalachian regions.
As of January 26, 2026, no public records show an open letter from organisations or officials urging a funding rethink. The proposed cuts would severely limit the ARC’s ability to support the Appalachian regions’ workforce and infrastructure projects.
The Big Beautiful Bill Act would slash the ARC’s budget from $200 million to $14 million. This reduction risks halting programmes that have attracted billions in investment and created thousands of jobs in the Appalachian regions. Without intervention, the agency’s role in the Appalachian regions’ economic recovery could shrink dramatically.
