HSR sparks tension between feds and states

WASHINGTON, D.C. — Reuters reports that Transportation Secretary Ray LaHood notified Ohio Governor-elect John Kasich and Wisconsin Governor-elect Scott Walker in a letter that federal money allocated to building high-speed passenger rail lines in their states cannot be used to pay for other infrastructure projects. LaHood added that the two states would lose funding if they choose not to participate in the rail project.

On Wednesday, Walker replied to LaHood with a letter that questioned investing in high-speed rail when Wisconsin needs money for four new highway projects and $1 billion worth of repairs on a widely used interchange. Additionally, Kasich said he wants $400 million in high-speed rail money to go to road construction and freight train lines. For the full story, click here.