Calif.'s high-speed rail project hits major snag

Plans to construct the first high-speed rail system in the U.S. faced a setback on Monday when a judge decreed the California High-Speed Rail Authority could not sell more than $8 billion in bonds to finance the $68 billion project. Instead, CHSRA has been told it must submit new financing plans for the project. The ruling "does not jeopardize the project" but "it will cause delay and it will cost more money," said Rod Diridon, CHSRA chairman emeritus. Not all are as sure. Democratic Lieutenant Governor Gavin Newsom says support for the project is dwindling and officials will have to determine whether the project should move ahead.

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