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Forest and landscape restoration (FLR) represents a critical nexus of climate change mitigation, biodiversity conservation, and sustainable development. Despite substantial federal investments and commitments, empirical subnational research quantifying the relationships between governance structures, funding mechanisms, and restoration outcomes remains scarce, and integrated implementation frameworks bridging institutional, technical, and socio-economic dimensions are largely absent from the literature. This study presents a mixed-methods analysis of FLR implementation gaps across Maryland, Virginia, and West Virginia. Three Mid-Atlantic Appalachian states selected for their contrasting ecological conditions, governance structures, and restoration trajectories that collectively represent the heterogeneity of subnational restoration challenges. We examined 147 restoration projects (2019–2024), conducted 25 stakeholder interviews, and analyzed federal funding allocations ($428 million) through spatial and temporal frameworks. Our findings reveal five critical implementation barriers: (1) policy incoherence across federal–state–local jurisdictions creating 34% project delays; (2) chronic underfunding with 63% of projects receiving less than 60% of planned budgets; (3) technical capacity deficits affecting 71% of rural communities; (4) inadequate stakeholder engagement mechanisms reducing project sustainability by 45%; and (5) insufficient monitoring frameworks limiting adaptive management. We introduce an Integrated Restoration Implementation Framework (IRIF) that uniquely integrates policy coordination, sustainable financing, technical capacity building, and community engagement within a unified adaptive management cycle, operationalized through empirically derived thresholds, to guide evidence-based interventions. Quantitative analyses demonstrate that multi-stakeholder governance models increase restoration success rates by 2.3-fold (p < 0.001), while integrated funding mechanisms improve long-term sustainability by 67%. Theoretically, this study advances socio-ecological systems scholarship by providing empirical evidence that multi-scalar governance configurations and integrated stakeholder engagement mechanisms are principal determinants of restoration success, advancing the evidence base for adaptive governance approaches in complex federal systems. Our findings provide actionable intelligence for policymakers and practitioners, while underscoring that sustainable FLR in complex federal systems depends on coherent multi-level governance architectures coordinating institutional mandates, financial resources, technical capacity, and community agency across jurisdictional scales.