WASHINGTON, February 3, 2003—The Bush administration proposed an FY 2004 budget for the Appalachian Regional Commission (ARC) that would maintain funding for the Appalachian Development Highway System (ADHS) at current levels while reducing funding for nonhighway programs and emphasizing regional initiatives.

The authorization for ADHS funding, which is derived from the federal Highway Trust Fund, would remain at $450 million for 2004. ARC's nonhighway funding, which supports economic and community development programs, would be reduced to $33.145 million. This reflects a 50 percent reduction from the president's request for the current year.

The president's budget directs ARC to continue targeting resources to the Region's most economically distressed counties and areas. ARC would continue its leadership role in establishing regional strategies and assume a larger responsibility for the coordination of other public and private investments in the Region.

The 2004 budget proposal for ARC by the administration is the first step in a process that will now move to Congress for consideration.