In all, 23 states will receive part of the $2.4 billion .The money will go toward constructing the track and the stations, as well as new passenger equipment and the studies for developing high-speed service.
0:00/2:58High-speed train skips traffic jamsDemand for the federal funding is high. The Federal Railroad Administration, a division of the department, said it received 132 applications from 32 states totaling $8.8 billion.
However, the grants are a drop in the bucket compared to the estimated total cost. For example, Amtrak has estimated that a high-speed revamp of the Northeast Corridor, the most highly developed rail stretch, would cost $117 billion.
The Obama administration considers high-speed rail to be a necessary component in improving the nation's infrastructure to stimulate economic growth.
The Recovery Act passed last year has provided a down payment of $8 billion for high-speed rail funding, and the Department of Transportation provided more than $2.1 billion as part of its fiscal year 2009 budget.
In comparison, China's Ministry of Railways is investing $300 billion in its nationwide high-speed rail project, according to a World Bank report from July.
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