Although fiscal year 1981 was a time of uncertainty for the Appalachian Regional Commission (ARC), Congress did appropriate $218.2 million for the highway program and $87 million for area development, research and local development districts (LDDs), and administrative costs. Coupled with other federal funds and funds from state and local sources, ARC expended $551.3 million in fiscal 1981. In addition to the highway program, programs continued in health, child development, vocational and other education, community development, energy and enterprise development, environment and natural resources, other programs and special demonstrations, housing, LDD planning and administration, and research and technical assistance. Supplemental grant funds were utilized according to priorities set by the Appalachian states; the share of education projects dropped from an earlier 57% to somewhat more than 7% in 1980 and 1981. Text and tables present an overview of ARC activities cumulatively from 1965 in the first part of the report. The next part provides maps, county population change data, program categories, amounts, and sources of funding for each of the 13 Appalachian states. A directory lists LDD addresses and a map pinpoints their locations. (BRR)