WASHINGTON, February 8, 2002—The U.S. Senate today passed a five-year reauthorization bill (S.1206) for the Appalachian Regional Commission (ARC). The legislation, which has now been approved by both the U.S. House and the Senate, will go back to the House for a final vote before going to President Bush, who is expected to sign it into law.

"This is a watershed event for ARC," said Federal Co-Chairman Jesse L. White Jr. "The benefit of reauthorization is that it provides our local and state partners a longer-term planning horizon for a range of important economic development projects. The Senate action this afternoon, and the vote earlier in the House, is tremendously good news for Appalachians."

ARC in recent years has been recognized by university researchers and Congress as an effective regional economic development program. The Commission has been cited as the model for the Denali Commission and the new Delta Regional Authority, as well as for other proposed regional development programs across the nation.

A key component of the legislation passed by the Senate today directs ARC to strengthen the telecommunications capacity of the Appalachian Region by facilitating greater access to broadband telecommunications infrastructure, supporting education and training in the use of telecommunications and technology, fostering wider adoption of e-commerce, and supporting entrepreneurial opportunities for businesses in the information technology sector.

On Monday President Bush requested from Congress a budget of $66.4 million to fund the Appalachian Regional Commission's nonhighway program in fiscal year 2003. In addition, approximately $400 million is anticipated for financing the Appalachian Development Highway System through the U.S. Department of Transportation.

Said ARC States' Co-Chairman Don Sundquist, governor of Tennessee: "The president recognizes the important role ARC plays in strengthening Appalachia's economy. The ARC partnership amasses local, state, and federal energies to create good jobs for our people and to improve education, health care, transportation, and so much more. We appreciate the president's support for the work of the Commission."

During fiscal year 2001, ARC's infrastructure investments and entrepreneurship programs helped create or retain an estimated 60,000 jobs in the 13-state Appalachian Region. New or improved water or sewer service was provided to more than 24,000 households. Some 50,000 Appalachian residents and students attended workforce training, leadership development, and other educational programs in fiscal year 2001. And through ARC's health programs, more than 300,000 medical care visits were logged with physicians in the Region.