Lawrence County Among Examples of Economic Growth in Rural Tennessee
Each year, the Appalachian Regional Commission (ARC) ranks all 3,100 U.S. counties based on economic status, namely by their poverty rate, per capita market income and unemployment rate. In Tennessee, this data is a key metric in tracking rural prosperity, a primary focus of Gov. Bill Lee’s administration.
Currently, nine Tennessee counties are designated as “distressed,” ranking in the bottom 10 percent nationally, while those between 10-25 percent are considered “at-risk.” Despite low statewide unemployment rates, these counties face higher poverty rates and lower per capita incomes. Each year, the Tennessee Department of Economic and Community Development (TNECD) provides grants and assistance to improve these rankings.
Looking back, Tennessee has made great strides in increasing prosperity across the state’s rural regions. In 2013, 26 counties were distressed. When Gov. Lee took office in 2019, that number dropped to 15 counties statewide. By 2023, it was at a historic low of eight. From 2023 to 2024, 74 percent of the state’s communities improved their ranking, followed by 59 percent from 2024 to 2025.
Lawrence County is a standout example of economic success. Once distressed in 2013, Lawrence County has moved up to the transitional category, meaning it ranks in the middle 50 percent of the nation’s counties. This progress is a result of the community’s focus on business development and workforce initiatives.
Since 2011, Lawrence County has partnered with TNECD to recruit 18 economic development projects, creating more than 1,600 jobs and $300 million in capital investment. More than half of those jobs are in the automotive sector, with 65 percent coming from expansions of existing companies. The county has also received 66 community development grants totaling nearly $30 million to improve downtown small businesses, expand broadband infrastructure and enhance water line extensions.
“Gov. Lee often says, ‘What happens in rural Tennessee matters to every Tennessean.’ That’s not just a commitment from the State — it’s a challenge to communities,” Lawrence County Chamber of Commerce CEO Ryan Egly said. “If Lawrence County’s success matters, we must do our part to attract new investment, create jobs, improve our schools and ensure that our people understand the many opportunities rural Tennessee has to offer. Thanks to TNECD, TVA Economic Development, Lawrenceburg Utility Systems and many other partners, we’ve been able to rise to the challenge.”
Looking west, McNairy County is another rural success story. Once distressed, it moved to the at-risk category in 2020. Local leaders secured multiple grants to address two common rural challenges: access to healthcare and fire protection. Improvements included hiring a fire chief, developing an operational plan, purchasing fire trucks, upgrading equipment and expanding water infrastructure, leading to a lower ISO rating that saves residents $2 million annually in insurance costs. Additionally, with the county’s hospital closing in 2016, leaders secured $3 million in TNECD grants to rehabilitate the health department for emergency services, set to open in 2026.
Morgan County focused on tourism to drive economic growth. In 2018, the county slipped into the distressed ranking for three years. Today, they are considered at-risk thanks to the redevelopment of Tennessee’s most famous prison, Brushy Mountain State Penitentiary. The facility sat vacant from 2009 to 2013 when the local Industrial Development Board partnered with a private investor to redevelop the site to include a concert venue, restaurant, distillery and prison tours. TNECD grants supported these efforts, funding stage construction, electrical upgrades and new lodging. Today, Brushy attracts 100,000 visitors annually.
TNECD’s Community and Rural Development division provides grants, technical assistance and other services across the state. Through the Rural Economic Opportunity program, funded by the Tennessee General Assembly and partnerships with federal agencies, TNECD has invested more than $1.2 billion in over 1,900 grants between 2020 and 2024.
While the department’s grants are critical to expanding opportunity across rural Tennessee, the true success of a community comes from strong, forward-thinking leaders who take the necessary steps to set their communities up for economic development success.
By Brooxie Carlton
— Brooxie Carlton Is TNECD Assistant Commissioner of Community and Rural Development
