Appalachian Development Highway System

To provide a highway system which, in conjunction with other federally-aided highways, will open up areas with development potential within Appalachia where commerce and communication have been inhibited by lack of adequate access.

Related Programs

Examples of Funded Projects


Agency - Appalachian Regional Commission

Office - Refer to Appendix IV of the Catalog.
Website Address

Program Accomplishments

At the end of fiscal year 2007, 2,655 miles were fully completed or under construction and open to traffic. This represents 86 percent of the total mileage authorized for the system.

Uses and Use Restrictions

The grants may be used for preliminary engineering, right-of-way, and construction of highways meeting the objectives stated above.

Total highway construction may not exceed 3,090 miles for the 13-State system.

The highways must be accepted and maintained as a Federal-aid highway.

Refer to general use restrictions stated in the Appalachian Regional Development program (23.001).

Eligibility Requirements

Applicant Eligibility

State governments only are eligible for development highways within their Appalachian portions.

Beneficiary Eligibility

General public.


Segments must be approved by the ARC and projects must be processed in accordance with State Highway department and Federal Highway Administration procedures.

Aplication and Award Process

Preapplication Coordination

An environmental impact statement is required for this program.

The standard application forms as furnished by the Federal agency and required by OMB Circular No.

A-102 must be used for this program.

The State highway department coordinates with the Federal Highway Administration, Department of Transportation (DOT), as in the case of federally aided highway construction.

The District Director or State Alternate's Office will provide guidance on specific problems and technical assistance in the preparation of applications.

This program is excluded from coverage under E.O.


Application Procedures

The ARC has established a corridor system. The Appalachian State office designated by the State Member submits an application for construction within this system to the Commission for consideration. ARC must concur in detailed highway locations and construction centerlines. Upon such approval, State highway departments may submit plans to implement projects to the State-level office of Federal Highway Administration. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedures

Upon determination that the State approved project is eligible within a Commission approved Appalachian Highway Plan, the Federal Co-chairman notifies FHWA of centerline approval after determining that the project satisfies all Federal requirements. The Department of Transportation is then notified, administers the grants and disburses the funds.




Appalachian Regional Development Act of 1965, Section 201, Public Law 89-4, as amended, 40 U.S.C. 14501.

Range of Approval/Disapproval Time

Usually within 60 days after the receipt of the application at the Commission.





Assistance Considerations

Formula and Matching Requirements

Funding for work on the Appalachian Development Highway System is allowed at 80%, wherever the project is located. The ARC Code and ARC Project Guidelines furnish details.

Length and Time Phasing of Assistance

Assistance is provided as required.

Post Assistance Requirements


The Federal Highway Administration provides the ARC with periodic reports on the progress and status of projects.

Each participating State makes fiscal year reports to the Commission of its allocations expected to be obligated during the fiscal year with the following information concerning each project to be funded: highway corridor segment description, project number, type of work, and estimated cost.


The Federal Highway Administration, DOT, supervises audits for the Commission. In accordance with the provisions of OMB Circular No. A-133 (revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.


Records and time of record maintenance as required by the Federal Highway Administration, DOT.

Financial Information

Account Identification



FY 07 $423,820,097; FY 08 est $470,000,000; and FY 09 est not reported.

Range and Average of Financial Assistance

Ranges and averages vary with type of use. Allocations are within predetermined system of highways. Funding is provided from the Highway Trust Fund authorized in SAFETEA-LU.

Regulations, Guidelines, and Literature

The ARC Code (limited distribution); "Appalachian Regional Commission Project Guidelines" (limited distribution); applicable State Appalachian Plans and Guidelines; "Appalachia" a journal devoted to the special problems of regional development; Performance and Accountability Reports, no charge.

Information Contacts

Regional or Local Office

Refer to Appendix IV of the Catalog.

Headquarters Office

Inquiries and proposals for projects should be submitted first to the Appalachian State office designated by the Governor. (See Appendix IV of the Catalog.) Other inquiries may be addressed to: Executive Director, Appalachian Regional Commission, 1666 Connecticut Ave., NW., Washington, DC 20009. Telephone: (202) 884-7700. Use the same number for FTS.

Criteria for Selecting Proposals


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