Appalachian Development Highway System
Program Objective
The Appalachian Development Highway System (ADHS) is a system of designated corridors and roadways within the 13 States that make up the Appalachian Region. The ADHS Program is aimed at timely completion of the designated ADHS. The ADHS was created by the Appalachian Regional Development Act of 1965. Its purpose was to provide a system of development highways and access roads which would contribute to economic development opportunities in the Appalachian regions of 13 States --Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. The ADHS program is jointly administered by the Appalachian Regional Commission and the FHWA.
This Assistance Listing 20.229 created in August 2025 was included in the previous ALN 20.205, please refer to former ALN 20.205 for FY24 and FY25 financial obligations. The new Assistance Listing 20.229 will be utilized by DOT at the start of FY 2026
Eligibility
Eligible Applicants
- U.S. State Government
The ADHS was created by the Appalachian Regional Development Act of 1965. Its purpose was to
provide a system of development highways and access roads which would contribute to economic development opportunities in the Appalachian regions of 13 States - Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
How to Apply
Award Procedure
The funds are apportioned to States by formula. For information on IIJA apportionments by State, please see the link below:
https://www.fhwa.dot.gov/infrastructure-investment-and-jobs-act/funding.cfm?_gl=1*1jchsao*_ga*ODU0MjExMTYzLjE3MDU2MDU0MTU.*_ga_VW1SFWJKBB*czE3NTUxMDA5NTgkbzM0MyRnMSR0MTc1NTEwMTAyOSRqNjAkbDAkaDA.
Program details & compliance
Description
The Appalachian Development Highway System (ADHS) is a system of designated corridors and roadways within the 13 States that make up the Appalachian Region. The ADHS Program is aimed at timely completion of the designated ADHS. The ADHS was created by the Appalachian Regional Development Act of 1965. Its purpose was to provide a system of development highways and access roads which would contribute to economic development opportunities in the Appalachian regions of 13 States –Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. The ADHS program is jointly administered by the Appalachian Regional Commission and the FHWA.
Please visit https://www.fhwa.dot.gov/specialfunding/adhs/ for additional information
Mission Categories
Primary: Highways, Public Roads, and Bridges
Use of Funds
Allowed Uses
The ARC and FHWA funds may be used for the construction, reconstruction, or improvement of
highways on the latest approved Cost to Complete Estimate of the ADHS. Section 133 of title 23 U.S.C. makes
STBG funds eligible for “highways, bridges, and tunnels, including designated routes of the Appalachian
development highway system and local access roads under 40 U.S.C. 14501” NHPP funds may also be eligible if the
facility meets the requirements of that program.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements
Formula
The funds resulting from prior apportionments under this program were available to States that contain one or more counties (including any political subdivision located within the area) in the Appalachian region, as defined in Section 14102(a) of Title 40, U.S.C.
After reserving the applicable administrative takedown described in paragraph (2), and in consultation with the Appalachian Regional Commission, the funds are apportioned to Appalachian States according to the percentages derived from the 2021 Appalachian Development Highway System Cost-to-Complete Estimate, dated March 2021, and confirmed as each Appalachian State’s relative share of the estimated remaining need to complete the ADHS, adjusted to exclude those corridors that such States have no current plans to complete, as reported in the 2013 Appalachian Development Highway System Completion Report, unless those States have modified and assigned a higher priority for completion of an ADHS corridor, as reported in the 2020 Appalachian Development Highway System Future Outlook.
The apportionments shall be adjusted so that (1) no Appalachian State is apportioned an amount in excess of 30 percent of the amount made available; (2) each Appalachian State receives at least $10,000,000; and (3) notwithstanding item (2), an Appalachian State does not receive an apportionment that exceeds the remaining funds needed to complete the ADHS corridor(s) in the State, as identified in the latest available cost to complete estimate for the ADHS prepared by the Appalachian Regional Commission.
For a project carried out with funds made available for construction of the ADHS, such funds shall be made available for obligation in the same manner as if apportioned under Chapter 1 of Title 23, U.S.C., except that: (1) the Federal share of the cost of any project carried out with those amounts shall be determined in accordance with Section 14501 of Title 40, U.S.C.; and (2) the amounts shall be available to construct highways and access roads under Section 14501 of Title 40, U.S.C. The Federal share of the cost of a project carried out with funds made available for construction of the ADHS under the BIL shall be up to 100 percent, as determined by the State.
The funds are not transferable under Section 126 of Title 23, U.S.C