Deficit could mean loss of high speed rail funding

November 23, 2010 9:11:53 AM PST
Concerns over the growing U.S. deficit could mean a huge loss of federal funding for California's high speed rail project.

Republican congressional leaders are wasting no time fulfilling their promise to slash public spending. The Contra Costa Times reports that $2 billion in stimulus funds promised to the high speed rail project are about to get yanked.

Last week a Southern California congressman introduced the American Recovery and Reinvestment Recession Act. It would return $12 billion in unspent stimulus money to the feds to help reduce the deficit.