Kentucky ARC Area Development Program
Kentucky ARC Area Development Program — Pre-Applications Open August 1, 2026
Pre-applications for Fiscal Year 2027 will be accepted and reviewed on a rolling basis, beginning on August 1, 2026. Invitations for full applications are extended at the discretion of the governor and are subject to availability of funds.
Pre-applications for Kentucky's Appalachian Regional Commission Area Development Program are being accepted here. Please review the Area Development Program Overview and FY27 Pre-Application instructions prior to submitting a pre-application.
Appalachian Regional Commission
What: The Appalachian Regional Commission is a federal-state economic development program designed to assist in the economic development of Appalachia through a diversity of projects in the areas of public infrastructure (water, sewer, solid waste, housing, and telecommunications), human resource development (education/workforce development, affordable/accessible healthcare, and leadership development) and business/entrepreneurial development.
Why: Historically, the far eastern region of Kentucky has lagged behind the rest of the nation in terms of economic development. The ARC grant program provides the region with financial assistance in creating jobs, developing a workforce, and providing health care and education services.
Who Can Apply? Local governments, special districts, and non-profit entities that include Kentucky's 54 most eastern and southcentral Counties are eligible to apply for the grant dollars.
Programs: The Appalachian Regional Commission has several different programs. This includes Kentucky's Area Development program (see details below), Partnerships for Opportunity and Workforce and Economic Revitalization Initiative (POWER), Investments Supporting Partnerships in Recovery Ecosystems Initiative (INSPIRE), Appalachian Regional Initiative for Stronger Economies (ARISE), and other specialized grant opportunities. Visit ARC's website for more information on funding opportunities.
All ARC grants have a required cost share. Match requirements are fifty percent (50%) for transitional counties, thirty percent (30%) for at-risk counties, and twenty percent (20%) for distressed counties. Federal Funds may not exceed 80 percent of the total project.
Examples of eligible projects include water/sewer line extension and treatment expansion; telecommunication/broadband deployment; learning center development; education/workforce development training; industrial site development; asset-based development planning/activities; and leadership development/civic capacity building.
ARC POWER (Partnerships for Opportunity and Workforce and Economic Revitalization) - Applications now closed
The Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative targets federal resources to expand economic opportunities for coal communities. POWER projects strengthen a variety of industries, including advanced manufacturing, entrepreneurship, healthcare, and workforce development, to bolster re-employment opportunities, create jobs in existing and new industries, and attract new sources of private investment in coal communities.
This NOSA gives an overview of the ARC's POWER Initiative, and the requirements needed to complete a grant application for FY26 funding.
ARC INSPIRE Initiative: Applications - Applications now closed
Investments Supporting Partnerships In Recovery Ecosystems (INSPIRE) is an initiative addressing the substance use disorder (SUD) crisis by creating or expanding a recovery ecosystem that will lead to workforce entry or re-entry. Successful projects will support the post-treatment to employment continuum, which could include investments in healthcare networks that support substance abuse recovery professionals, recovery-focused job training programs, as well as initiatives that promote employer supports and recovery-ready workplaces.
This NOSA gives an overview of the ARC's INSPIRE Initiative, and the requirements for completing a grant application for FY26 funding.
Follow Kentucky Department for Local Government on Facebook and @DLG_KY on X.com (formerly Twitter) for updates on funding opportunities!
Full Application Forms for Construction Projects
Full Application Forms for Non-Construction Projects