WASHINGTON, February 2, 2004—The Bush administration proposed a budget for the Appalachian Regional Commission (ARC) today that would maintain level funding for both the Appalachian Development Highway System and ARC's nonhighway economic development programs and regional initiatives in fiscal year (FY) 2005.

The funding for the Appalachian Development Highway System would remain at $450 million for FY 2005, and ARC's nonhighway funding would remain at $66 million. Funding for projects in the Appalachian Region's most distressed counties and areas would continue to be a priority.

ARC Federal Co-Chair Anne B. Pope welcomed the administration's budget proposal. "President Bush has made it clear that while the national economy is on track for recovery and sustained job creation, he will not be satisfied until every person who wants to work can find a job and prosperity reaches every corner of America," Pope said. "And the president believes that ARC can deliver the tools communities need to build a sustainable economic future for themselves."

Virginia Governor Mark R. Warner, ARC's 2004 states' co-chair, stated: "Over the past year, I have taken every opportunity to ensure that our leaders in Washington fully understand the crucial role ARC funds play in making significant improvements in our Appalachian communities. Among the many claims on our federal budget, it is heartening that President Bush has placed the people of Appalachia in a priority position. I will continue to work with congressional leaders, ARC leadership, and governors from the other Appalachian states to ensure this appropriation is approved and progress in the Appalachian Region continues."

The administration's FY 2005 budget proposal must now go to Congress for its consideration.

Summary of the President's FY 2005 Budget Request for ARC