Kentucky sets ARC funding records with $78.8 million award

Kentucky announced $78.8 million in Appalachian Regional Commission funding for 67 Eastern Kentucky projects, setting a state record for annual ARC awards. The FY2026 package includes broadband expansion, water and sewer work, replacement of a water-treatment plant and a planned health-care training center.

Gov. Andy Beshear announced the awards Oct. 7. The Governor’s Office said Beshear recommended the projects and ARC Federal Co-Chair Gayle Manchin gave them final approval. The state reported nearly $93.8 million in matching funds from local governments and organizations, putting the combined investment at more than $172.5 million. The release says matching funds can include other grants or state dollars.

Two records, with different comparisons

The total award exceeds Kentucky’s previous annual ARC funding record of $59.2 million, set in FY2023, by $19.6 million. A separate part of the package also sets a record: more than $62.3 million is designated for 51 projects through ARC’s Area Development Program. That surpasses the program’s previous Kentucky record of $47.7 million, also set in FY2023. The two prior-year figures measure different totals: one covers all Kentucky ARC funding, the other the Area Development Program.

The 51 Area Development Program projects are part of the 67-project award, not an additional set of projects. The state’s announcement describes funding across multiple project types and identifies selected investments in household internet access, local water and sewer infrastructure, and workforce development.

Selected projects target broadband, utilities and training

The broadband figures describe the projects’ intended reach, not homes already connected. The state says Wheelwright’s existing water-treatment facility dates to the 1930s and the replacement is intended to provide clean water to more than 300 homes. In Whitesburg, the former high school gym is planned for renovation into a center for health-care training and development; the state expects the project to create more than 20 jobs.

These are selected examples from a larger Eastern Kentucky package. Together, the projects direct grant and matching funds toward internet access, essential utility systems and health-care workforce development. The stated household reach and job count are anticipated benefits, rather than reported completed outcomes.

The next step is implementation of the funded projects. The awards cover different communities and types of work; the Governor’s Office announcement does not give a single construction or completion timetable for the full group.