In our last article, we bemoaned the impoundment of education funding impacting 21st Century Community Learning Centers as well as a host of other crucial ED programs. The good news is that organized public outcry seems to have worked (for now). This week we’re talking about something we find just as concerning. The White House has proposed a 93% reduction to the Appalachian Regional Commission’s (ARC) budget in its FY2026 discretionary spending plan. If enacted, ARC’s funding would plummet from approximately $200 million to just $14 million—an amount so low it would barely cover administrative operations, let alone community grants or programmatic impact.
This proposal is more than a budget line item. It’s a direct threat to the progress Appalachia has made over the past six decades.
What ARC Does—and Why It Matters
Established in 1965, the Appalachian Regional Commission is one of the few federal agencies designed specifically to serve a region long marginalized in national economic development. Its funding supports infrastructure, job creation, small business development, workforce training, broadband expansion, and public health initiatives—including recovery efforts in areas ravaged by both Hurricane Helene and the opioid crisis.
ARC’s investments aren’t symbolic. They’re strategic, measurable, and catalytic. We know the value of ARC as well as anyone. We not only live here and see the impact of ARC programs every day; we have been integral in securing millions of dollars in investments in our region for education, workforce development, economic development, and substance use disorder recovery. These programs work because they are built on a model that includes state partnerships, local development districts, and input from the communities they serve, our community, our home.
What the Proposed Cut Would Mean
At $14 million, ARC would be functionally incapacitated. Its staff could continue to show up to work—but there would be no money for grants. No new broadband projects. No entrepreneurship training. No recovery housing initiatives. No support for the thousands of nonprofits, local governments, and regional coalitions that rely on ARC each year to move forward projects that would otherwise remain on the shelf.
This is especially dangerous given the region’s ongoing challenges: persistent poverty, declining industries, limited infrastructure, and a mounting addiction crisis, not to mention the devastation wreaked by an unprecedented hurricane event in our mountains last fall. ARC’s READY Appalachia initiative, which helps strengthen nonprofit capacity, is just one example of how targeted funding is helping the region build long-term resilience. Cuts of this magnitude would halt these efforts in their tracks.
Regional Voices Are Sounding the Alarm
The response from Appalachian leaders needs to be swift and unified. So far, more than 80 regional organizations—including local governments, chambers of commerce, and nonprofits—have urged Congress to reject the proposed cut and restore full funding to ARC.
Across the region, the message needs to be clear: the loss of ARC funding would undo years—if not decades—of progress. We need to mobilize for ARC the same way the Afterschool Alliance and many other organizations rallied to stop the impoundment of education funding.
What’s Next—and Why It Matters
The proposed cut is not final. Congress controls discretionary appropriations and can act to restore full funding. But with political priorities shifting, ARC’s future could be determined by the strength of regional advocacy—and the willingness of Congress to listen.
For those of us working in and with Appalachian communities, this is a moment to be vocal. Our clients and partners see firsthand what this funding does. They know that ARC is not a handout. It’s a lifeline—and a launching pad.
Take Action
We urge readers to contact their members of Congress and express support for full ARC funding in the FY2026 federal budget. If you’ve benefited from ARC funding—or if your community has—a personal story can make all the difference.
At KFA Nonprofit, we’ve worked with dozens of organizations whose success would not have been possible without ARC support. We know what’s at stake. And we know that Appalachia deserves more than abandonment.
Now is the time to stand up for the future of our region. The people of Appalachia have never lacked grit. What we need is continued investment—and the respect of a nation that once promised to stop leaving us behind.