Appalachian Regional Commission
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The Appalachian Regional Commission Area Development Program is a federal-state economic development initiative managed by the Kentucky Department for Local Government. It aims to achieve socioeconomic parity in Kentucky's 54 most eastern and southcentral counties by funding projects in public infrastructure, human resource development, and business or entrepreneurial development. Eligible applicants include local governments, special districts, and non-profit entities. The program offers various funding streams, including the Area Development program, the POWER initiative for coal communities, and the INSPIRE initiative for substance use disorder recovery ecosystems. For Fiscal Year 2027, pre-applications will be accepted on a rolling basis starting August 1, 2026, with full application invitations extended at the governor's discretion. Funding requires a cost share based on county economic status: 20 percent for distressed counties, 30 percent for at-risk counties, and 50 percent for transitional counties, with federal funds capped at 80 percent of the total project cost. Eligible projects range from water, sewer, and broadband deployment to workforce training and industrial site development. Construction projects must adhere to specific guidelines, including Davis-Bacon wage rates and the use of a basic agency such as USDA Rural Development for certain requirements.
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