Press Release

House Votes to Reauthorize Appalachian Regional Commission

July 15, 2008

Washington, DC – The U.S. House of Representatives today approved legislation to reauthorize the Appalachian Regional Commission (ARC), the commission created to address economic issues and trigger jobs and growth in the Appalachian region of the United States.

The House passed the Appalachian Regional Development Act Amendments of 2008 (S. 496) under suspension of the rules.  The bill is a House-Senate bipartisan compromise that authorizes $510 million for the ARC over five years (fiscal years 2008-2012).

“As a Member of Congress from West Virginia, I can attest to the tremendous work the Appalachian Regional Commission has done to bring clean water, safe roads, new jobs, and a better quality of life to millions of people in the Appalachian region,” said U.S. Rep. Shelley Moore Capito (R-WV), a member of the House Economic Development, Public Buildings and Emergency Management Subcommittee.

“Leveraging Federal-funds in West Virginia and the other Appalachian States has helped to dramatically improve our communities over the years.  The investment has resulted in the reduction of poverty, the creation of jobs, and the improvement of health and education. 

“The bill authorizes the creation of the Economic and Energy Development Initiative, which will provide grants to develop new alternatives for utilizing our vast conventional energy resources.

“The work of the Commission is an example of a federal and state partnership that has promoted economic growth in needed areas so that those communities can prosper independently in the future,” Capito said.

The ARC was created by the Appalachian Regional Development Act of 1965 (P.L. 89-4) to assist in programs in the region that would encourage economic development.  The commission is led by two co-chairmen: one presidentially appointed and one selected by the governors of the participating states.  The commission includes all or parts of Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. 

“The ARC is a successful model for economic development and a valuable tool for creating jobs and enhancing economic growth in Appalachia,” said U.S. Rep. John L. Mica (R-FL), Transportation and Infrastructure Committee Republican Leader and cosponsor of the House bill.

S. 496 authorizes the following amounts in appropriations:

  • $87,000,000 for fiscal year 2008;
  • $100,000,000 for fiscal year 2009;
  • $105,000,000 for fiscal year 2010;
  • $108,000,000 for fiscal year 2011; and
  • $110,000,000 for fiscal year 2012.

The bill establishes an additional county designation, entitled “at-risk,” for those counties at risk of qualifying for the distressed designation.

The bill also includes language from the House bill designed to discourage earmarking projects in future appropriations bills.

In addition, the bill amends current law to allow the Commission to cover up to 70% of administrative costs for programs that address problems in communities at risk of becoming distressed in the region.  These programs include demonstration health projects, proposed low- and middle- income housing projects, and initiatives for telecommunications, technology and entrepreneurship.

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