Per Velonews, USA Cycling denied the appeal of the Battenkill Tour organizers for inclusion in the UCI America Tour. The race goes on, naturally, but it'll be at least another year before it gets to join the top ranks of domestic pro racing.
The race has gotten some attention lately, in part because by all accounts its dirt tracks and sharp climbs make for an incredible circuit, and in part because they called on their senator, Chuck Schumer, to lobby USA Cycling for inclusion. But letters from powerful people are no substitute for some of the details of race promoting, according to Sean Petty of USA Cycling, who politely points out that the promoters haven't yet demonstrated the wherewithal to run a top pro event. This is where my own understanding starts to break down, but we fans are usually pretty sensitive to legitimate-sounding rider complaints about race mismanagement. So, fair play to USAC. Update, by Chris: or maybe not. See the promoter's description in the comments.
Battenkill used Schumer to get people's attention, which worked. Now let them go back to the drawing board and figure out how to run a top-flight pro event for, say, 2010.