Kentucky is among the Appalachian states hit hardest by a sharp decline in clean energy manufacturing employment, which has dropped nearly 300,000 jobs since 2024, according to a new report from ReImagine Appalachia.

The downturn represents a dramatic reversal from the manufacturing boom sparked by the Inflation Reduction Act and the Bipartisan Infrastructure Law, which had unlocked significant private investment in factories and infrastructure across the region. Bay Epperly, sustainable manufacturing coordinator for ReImagine Appalachia, said the Trump administration's rollback of policies designed to spur economic growth has left Kentucky and other Appalachian states particularly vulnerable to economic uncertainty.

"What does the future look like economically and socially in Appalachia?" Epperly said. "I think with this report, it really just underscores what a lot of us are feeling in communities – it's kind of just hanging in the air."

The sharp decline threatens to undermine years of economic development efforts. A ReImagine Appalachia report published last year found nearly 70% of projected clean energy jobs in the Appalachian region are now at risk following federal funding shifts and policy changes.

Advocates have urged Congress to restore and strengthen manufacturing investments in Appalachia heading into 2027, with lawmakers facing a Sept. 30 deadline to finalize a fiscal year 2027 budget. Epperly said dozens of organizations are backing efforts to bring back job-focused investments that prioritize worker wellness, apprenticeships, and union partnerships.

Diana Polson, Pittsburgh policy and research director at the Keystone Research Center and a report co-author, urged local communities to prepare for potential opportunities despite federal uncertainty. "That means preparing industrial sites, training workers, strengthening local suppliers and that can kind of help to build a strong ecosystem," Polson said. She emphasized that the region retains significant energy expertise and manufacturing knowledge that could position it competitively if federal support returns.