The New Deal also addressed another poverty-stricken region, Appalachia, the mountain-and-valley communities that roughly follow the Appalachian Mountain Range from southern New York to the foothills of Northern Georgia, Alabama, and Mississippi. Appalachia’s abundant natural resources, including timber and coal, were in high demand during the country’s post-Civil War industrial expansion, but Appalachian industry simply extracted these resources for profit in far-off industries, depressing the coal-producing areas even earlier than the rest of the country. By the mid-1930s, with the Depression suppressing demand, many residents were stranded in small, isolated communities whose few employers stood on the verge of collapse. Relief workers from the Federal Emergency Relief Administration (FERA) reported serious shortages of medical care, adequate shelter, clothing, and food. Rampant illnesses, including typhus, tuberculosis, pneumonia, and venereal disease, as well as childhood malnutrition, further crippled Appalachia.

Several New Deal programs targeted the region. Under the auspices of the NIRA, Roosevelt established the Division of Subsistence Homesteads (DSH) within the Department of the Interior to give impoverished families an opportunity to relocate “back to the land”: the DSH established 34 homestead communities nationwide, including the Appalachian regions of Alabama, Pennsylvania, Tennessee, and West Virginia. The CCC contributed to projects throughout Appalachia, including the Blue Ridge Parkway in North Carolina and Virginia, reforestation of the Chattahoochee National Forest in Georgia, and state parks such as Pine Mountain Resort State Park in Kentucky. The TVA’s efforts aided communities in Tennessee and North Carolina, and the Rural Electric Administration (REA) brought electricity to 288,000 rural households.