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The Trump Budget: Harming Kentuckians in Appalachia
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The Trump Budget: Harming Kentuckians in Appalachia

President Trump’s proposal to dissolve the Appalachian Regional Commission would cost Kentucky millions of dollars and hundreds of jobs.

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Downtown streets are seen from a mountaintop in Harlan, Kentucky, on October 20, 2014. (AP/David Goldman)
Downtown streets are seen from a mountaintop in Harlan, Kentucky, on October 20, 2014. (AP/David Goldman)

Despite President Donald Trump’s promises to support Appalachian and coal country workers, his budget would completely cut the Appalachian Regional Commission, or ARC—a partnership that works with state and local governments to invest in the region’s workers, businesses, and critical infrastructure. In eastern Kentucky, ARC funds support an average of 613 jobs and $17.2 million in earnings every year.

The commission covers the Appalachian region, spanning 420 counties and 13 states, and garners strong bipartisan support. The ARC acts as a catalyst for targeted efforts developed by local communities for local communities, ranging from access to water and internet and the development of agritourism to the preservation of Appalachian history and culture, as well as job creation and entrepreneurship.

One of the core ARC projects is the Appalachian Development Highway System, which seeks to connect Appalachian communities, bring in new jobs, and promote economic development in the region. The system is 89 percent complete. If finished, it is predicted to result in 80,500 jobs, $5.0 billion in increased value-added production, and $3.2 billion in increased wages for workers in Appalachia by 2035—a return of $3 for every dollar invested.

The ARC empowers local governments to design and implement economic revitalization plans that address the needs of their communities. From 2007 to 2013, ARC nonhighway investments accounted for nearly 10,000 jobs and $400 million in regional earnings, and since its founding, these nonhighway investments have brought an estimated 311,835 jobs to Appalachia. In ARC counties from 1969 to 2012, job growth was 4.2 percent higher and income growth was 5.5 percent higher on average compared to neighboring non-ARC counties.

Appalachian voters trusted President Trump to understand their needs and create good jobs—95 percent of the counties covered by the Appalachian Regional Commission voted for him in 2016. But Trump is already turning his back on Appalachia—and Kentucky faces threats to both the ARC and the Delta Regional Authority, which acts in a similar role in other parts of the state.

Impact of the Appalachian Regional Commission in Kentucky

The ARC covers 54 counties in Kentucky, about one-fourth of the state’s population. All 54 counties covered by the ARC voted for Trump in 2016. These counties fall into five of Kentucky’s six congressional districts—the 1st, 2nd, 4th, 5th, and 6th Districts—which are represented by Rep. James Comer (R), Rep. Brett Guthrie (R), Rep. Thomas Massie (R), Rep. Hal Rogers (R), and Rep. Andy Barr (R).

Without the ARC, Kentuckians would lose out on an average of 613 jobs and $17.2 million in added earnings every year. Here is the breakdown:

  • Since its founding, the ARC has brought more than 30,000 jobs, invested $427.9 million, and led to $842.3 million in increased earnings for Kentuckians.
  • From October 2015 to January 2017, the ARC invested $31.9 million in 63 projects in Kentucky and attracted an additional $29.8 million in private investments. These projects created or retained more than 1,200 jobs and provided education and training for nearly 2,400 students and workers.
  • The Comprehensive Adventure Tourism Plan for Eastern Kentucky, funded by the ARC in 2006 and 2007, was predicted to bring 969 jobs to the area, along with an added $17 million in household earnings annually.
  • Through a partnership with ConnectKentucky, the ARC has provided thousands of computers to eastern Kentucky school, ensuring that kids in Appalachia have access to technology and the opportunity to hone digital skills.

Conclusion

At the ballot box, voters in Appalachia trusted Donald Trump to fight for their jobs and their communities as president. Cutting the ARC is an outright betrayal of Appalachian communities and would leave them without the funds to implement critical workforce, education, and infrastructure projects.

Sunny Frothingham is a Senior Researcher at the Center for American Progress.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.

Authors

Sunny Frothingham

Senior Researcher

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