Center for American Progress

The Trump Budget: Harming Tennesseans in Appalachia

The Trump Budget: Harming Tennesseans in Appalachia

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

Part of a Series
A man sits near Nickajack Lake in Marion County, Tennessee, on March 15, 2005. (AP/Mark Gilliland)
A man sits near Nickajack Lake in Marion County, Tennessee, on March 15, 2005. (AP/Mark Gilliland)

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 Tennessee, ARC funds support an average of 512 jobs and $16 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 Tennessee 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 Tennessee

The ARC covers 52 counties in Tennessee and 2.8 million residents—43 percent of the state’s population in 2014. Every one of the 52 counties covered by the ARC voted for Trump in 2016. The counties fall into six of Tennessee’s nine congressional districts—the 1st, 2nd, 3rd, 4th, 6th, and 7th Districts—which are represented by Rep. Phil Roe (R), Rep. Jimmy Duncan Jr. (R), Rep. Chuck Fleischmann (R), Rep. Scott DesJarlais (R), Rep. Diane Black (R), and Rep. Marsha Blackburn (R).

Without the ARC, Tennesseans would lose out on an average of 512 jobs and $16 million in added earnings every year. Here is the breakdown:

  • Since its founding, the ARC has brought more than 25,000 jobs, invested $326.5 million, and led to $784.1 million in increased earnings for Tennesseans.
  • From October 2015 to January 2017, the ARC invested $14.7 million in 58 projects in Tennessee, which attracted an additional $10 million in private investments. These projects created or retained 230 jobs and provided training and education for nearly 4,400 students and workers.
  • The ARC provides half of the annual budget for the Governor’s Books from Birth Foundation, which has provided 791,825 Tennessee children with 28.3 million books.
  • The ARC provided the bulk of the 2016 budgets for several business development projects, including Tennessee business incubators and the design of the Oak Ridge Airport Initiative, which will bring a new airport to eastern Tennessee.


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.


Sunny Frothingham

Senior Researcher

Explore The Series