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Feds sign updated $2.5 billion high-speed rail grant

SACRAMENTO, Calif. (AP) — Federal transportation authorities have signed an updated grant agreement with California reflecting the delayed timeline for building the state's $64 billion high-speed rail project.

The board that oversees high-speed rail approved a new business plan last month that calls for trains to run between the Central Valley and San Jose starting in 2025. That's three years later and 50 miles shorter than the original plan calling for trains to head to the San Fernando Valley in Southern California.

The updated agreement with the Federal Railroad Administration released Wednesday covers $2.5 billion in federal matching funds for the project.

Rail authority spokeswoman Lisa Marie Alley says the state still faces a deadline to spend the federal money by 2017, but has until 2021 for the matching funds.

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