Federal budget bill could stall growth and investment in Appalachia
May 19, 2025
A new report highlights record-breaking investments in the Appalachian region, driven largely by federal climate and infrastructure funding over the past few years.
However, Congress is considering a budget reconciliation bill that could cut funding and put a damper on union jobs and private investment.
Dana Kuhnline, program director for the coalition ReImagine Appalachia, said funds included in the Inflation Reduction Act and Infrastructure Investment and Jobs Act could be lost.
“One of the reasons that’s so harmful for our region is that a huge percentage of the Inflation Reduction Act was targeted with special provisions for communities that had seen a downturn from manufacturing and other industry loss, to try and build those industries back up,” Kuhnline explained.
According to data from the Center for American Progress, Ohio has seen a record $11 billion in investments and created more than 4,700 jobs since the Inflation Reduction Act passed in 2021.
Rike Rothenstein, senior research associate for ReImagine Appalachia, said Ohio leads four Appalachian states with a total of $40 billion in public and private investments. She noted federal money helped spur economic growth and drove companies to the region.
“It is really the private investment that was significantly responsible for that renaissance,” Rothenstein emphasized. “For that push and strengthening of U.S. manufacturing in the region.”
The report shows federal investments in clean energy manufacturing and transportation technologies totaled about $128 billion between 2022 and 2024.
Disclosure: Reimagine Appalachia contributes to our fund for reporting on Climate Change/Air Quality, Energy Policy, and Sustainable Agriculture. If you would like to help support news in the public interest, click here.
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