Governor Arnold Schwarzenegger joined other political, labor, business and environmental leaders to hail the $2.3 billion grant -- the largest received by any state.
The governor credited the intense, 10 year effort to see this project through -- one he says will be a major boost to California's economy.
"The $2.3 billion with the matching funds, will create 90,000 new jobs for California and if you think about the entire project of the high speed rail, it will be 600,000 jobs that we will be creating," said Schwarzenegger.
The plan calls for 800 miles of track to be built.
The emission-free trains will travel at more than 220 miles per hour, allowing riders to travel from Los Angeles to San Francisco in just two hours and 45 minutes.