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Ashton
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Posted on Monday, October 25, 2010 - 06:14 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

http://www.reuters.com/article/idUSTRE69O52C20101025

(Reuters) - The government will soon distribute $2.5 billion for high speed rail projects nationwide with California and Florida to receive the largest amounts, state and congressional officials said on Monday.

The Transportation Department would not confirm details ahead of an expected announcement later in the week, but the agency's secretary, Ray LaHood, notified members of Congress about the awards earlier in the day.

California is set to receive $902 million, most of it going to projects in the Central Valley region. Florida will receive $800 million.

"This is a great announcement for California that will create jobs at a time that we really need them," said Senator Barbara Boxer in a statement. Boxer, a Democrat, is in a tight race for re-election against Republican challenger Carly Fiorina.

The Golden State, which has the third highest unemployment rate in the country at 12.4 percent, has approved selling $10 billion bonds to build a rail line stretching north to south.

California already received $2.25 billion for rail development under the U.S. economic stimulus plan approved by Congress last year.

The current round of federal funding will not come from the stimulus package, which set aside $8 billion for building faster passenger trains. Instead, it is sourced to a separate grant program.

In January, Florida received $1.25 billion from the stimulus plan to build a line from Orlando to Tampa.

U.S. Rep. John Mica, who could take over chairmanship of the Transportation Committee if Republicans win control of the House in the November 2 elections, said the project is in the hands of voters who will decide whether to connect mass transit to the high-speed rail in a special ballot.

"The Orlando-to-Tampa project will be the first new intercity passenger rail project built in the U.S. in decades, and it must be financially viable and connect into regional fixed transit systems," Mica said in a statement.

Senator Bill Nelson of Florida said that the state needs $300 million more from the federal government to complete the $2.6 billion project, and "the remaining federal funds could come next year."

Total grants are expected to total $2.5 billion, according to a Senate aide.

This includes $230 million for a line connecting Chicago and Iowa City, according to Iowa Governor Chet Culver.

A project connecting New Haven, Connecticut, to Springfield, Massachusetts, will receive $120 million, according to Connecticut Governor M. Jodi Rell.

Rep. John Dingell said his state of Michigan will receive $150 million and Virginia will receive $45.4 million for preliminary engineering and environmental impact assessments for a line connecting Richmond to Washington.

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