One third of rural Appalachian counties are distressed. Central Appalachia has particularly high poverty, unemployment, and dropout rates. Appalachia received more per capita federal funds than the U.S. average, but only in urban areas. Appalachia received less than average funding for community resources and human resources, which create jobs and economic growth. Federal aid to Appalachia's three subregions is analyzed by program type and rural-urban differences. (SV)