(equivalent to $ in dollars) cost estimate. Planning of the Portage Bay tunnel between Capitol Hill and the University District was suspended due to higher than expected contractor bids, attributed to difficult soil conditions. Sound Transit adopted the revised budget and schedule in January 2001, including provisions to re-study routing options between Downtown Seattle and the University District, along with a $500 million federal grant agreement to fund the construction of an "initial segment" for the project. The initial segment identified and approved by Sound Transit later that year shortened the line to , between Downtown Seattle and a southern Tukwila station near Sea-Tac Airport. The remaining routes to the airport and University District were sent back to the planning stage, and re-organized into separate light rail projects. In November 2001, Sound Transit approved construction of the shortened Central Link light rail project, calling for a summer 2002 groundbreaking. Property acquisition in the Rainier Valley began in March 2002, but two legal battles delayed the start of construction. In November 2002, the King County Superior Court ruled in favor of Sound Transit in a lawsuit filed by light rail opponents, alleging that it lacked the authority to shorten a voter-approved line. The approval of Tim Eyman's Initiative 776 threatened to repeal motor vehicle excise taxes needed to fund Sound Transit's budget, but was declared unconstitutional in February 2003. Another routing change requested by the City of Tukwila, placing light rail tracks along freeways in lieu of International Boulevard, was approved by Sound Transit and the Federal Transit Administration in 2002, moving the project closer to construction. Construction and testing Sound Transit received its $500 million federal grant agreement in October 2003, and a groundbreaking ceremony was held in SoDo on November 8, 2003. Construction contracts for various segments were awarded in 2004 and 2005, coming six percent under Sound Transit's estimates, and work began along all parts of the system. The first rails were installed on August 18, 2005, in the SoDo area; a month later, the downtown transit tunnel closed for a two-year renovation to accommodate light rail service. Excavation of the Beacon Hill tunnel and station began in 2005, and two tunnel boring machines were launched in early 2006 to bore the twin tunnels between SoDo and the Rainier Valley. The SODO and Stadium stations were completed in May 2006, and light rail testing in the SoDo area