Investment total beats previous Kentucky record of $59.2 million in fiscal year 2023
FRANKFORT, Ky. (Oct. 7, 2026) – Today, Gov. Andy Beshear announced that Kentucky received a record $78.8 million from the Appalachian Regional Commission (ARC) in fiscal year 2026. The money will go toward 67 projects across Eastern Kentucky and support the everyday needs of Kentuckians by helping establish a healthcare training center, improving and replacing outdated water and wastewater treatment equipment, and supporting Team Kentucky’s high-ground initiative, which is moving flood survivors out of the floodplain.
“The people of Eastern Kentucky powered the United States into the global leader it is today and they deserve to be treated as a priority – which this record-breaking investment does,” said Gov. Beshear. “This funding will fuel projects that deliver clean water, increase access to healthcare and address the everyday needs hardworking families are focused on. Team Kentucky thanks ARC Federal Co-Chair Gayle Manchin for being a friend to Kentucky and the entire Appalachian region.”
This breaks the prior record for ARC funding to Kentucky, which was set in fiscal year 2023 at $59.2 million. In 2023, Gov. Beshear served as the States’ Co-Chair of the ARC alongside Federal Co-Chair Gayle Manchin.
“ARC’s investments in Kentucky reflect our commitment to supporting the communities, workers and families who are helping grow a strong Appalachian economy.” said ARC Federal Co-Chair Gayle Manchin. “Through these projects, ARC is helping address critical infrastructure needs, strengthen workforce development, and improve the quality of life across Eastern Kentucky. We are proud to work alongside Governor Beshear and each Appalachian governor to advance investments that create greater opportunity and lay the foundation for long-term economic growth throughout the region.”
Local governments and organizations typically rely on these grants to cover funding gaps while investing matching funds to cover remaining costs. These matching funds sometimes are other grants or can be state dollars. These 67 projects are being matched by nearly $93.8 million from these local governments and organizations. In total, these projects represent more than $172.5 million in investment across Appalachian Kentucky.
Fifty-one of these projects are receiving a total of over $62.3 million from the ARC’s Area Development Program. This is the highest funding total from this program in Kentucky’s history. Gov. Beshear recommended these projects to Manchin, who gave the final approval.
Kentucky recorded its prior ARC Area Development Program investment record from the Area Development Program in fiscal year 2023 at $47.7 million.
Projects that were approved for funding based on Gov. Beshear’s recommendation include:
- $25.7 million to the Center for Rural Development for six BEAD award projects to expand high speed internet to over 3,000 homes across 12 counties;
- $3.1 million to help install water and sewer infrastructure at the Chestnut Ridge high ground neighborhood in Knott County;
- $1.8 million to extend sewer service to unserved areas in Perry County;
- $1.7 million to renovate the old Whitesburg High School gymnasium into a healthcare training and development center, creating over 20 jobs; and
- $1.7 million to help replace a water treatment plant in Wheelwright, in Floyd County, updating a 1930s era facility and ensuring clean water for over 300 homes.
Click here for a full list of fiscal year 2026 projects from the Area Development Program.
Click here for a full list of fiscal year 2026 projects from all other ARC grant programs.
Kentucky’s ARC program is administered by the Kentucky Department for Local Government (DLG). Under Gov. Beshear’s administration, Kentucky’s ARC program has seen record investment from the federal government.
“The Department for Local Government is proud to help bring these dollars to communities across Eastern Kentucky,” said DLG Commissioner Matt Sawyers. “These record-breaking investments ensure our communities have access to clean water, healthcare and good-paying jobs.”
About the Appalachian Regional Commission
The ARC is an economic development entity of the federal government and 13 state governments focusing on 423 counties across the Appalachian Region. ARC’s mission is to invest and partner to strengthen economic development in Appalachia to help the region reach its full economic potential.
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