( CNN ) -- An Obama administration initiative that aims to create jobs and economic growth has been derailed in some states while it speeds along in others . The loss of a total of $ 1.2 billion in high-speed rail funds in Wisconsin and Ohio means the promise of thousands of new jobs in those states will not be realized , according to proponents of the fast passenger trains . The Obama administration wants to use large-scale infrastructure projects like high-speed rail to boost the economy much in the way that public works projects put people back to work during the Great Depression . Mayor Ron Krueger was hoping a high-speed line that was planned to go through Watertown , Wisconsin , would spur development of retail and apartments in his town of about 23,000 . But some newly elected officials have put the brakes on those plans , raising questions about whether it 's still possible to build big in the United States . Citing two incoming governors ' opposition to high-speed rail projects in the Midwest , Transportation Secretary Ray LaHood redirected $ 810 million away from Wisconsin and $ 400 million from Ohio to other states . California is getting the lion 's share , $ 624 million for its link between Los Angeles and San Francisco . $ 342 million is going to Florida with the remainder divided among Washington and 10 other states . Is the U.S. turning a corner on high-speed rail ? Along with the money comes jobs . In Wisconsin , the outgoing governor Jim Doyle claimed over 4,700 jobs directly related to the high-speed rail line between Milwaukee and Madison would have been realized at the height of construction . Proponents claimed thousands of indirect jobs would have been created as a result of the projected economic growth along the line . `` Rail creates value , '' said Petra Todorovich at the Regional Plan Association , a transportation and public policy think tank in New York . She 's the director of America 2050 , a national initiative to meet the needs of the country over the next 40 years based on a projected population growth of 100 million . `` It 's a permanent investment both residential and commercial investors can look at . There are the construction jobs in working on the railroad , '' Todorovich said . People in the area are also put to work building the locomotives and rail cars . There are also indirect benefits that come with a new rail line , according to Todorovich . `` There are jobs related through real estate and commercial investment . These are long-term jobs . '' But Wisconsin 's Republican Governor-elect Scott Walker said he has serious doubts about the projected job benefits related to the project . `` The estimates , I think , are woefully optimistic . '' Scott Walker campaigned on a promise to kill high-speed rail in Wisconsin , saying that it would leave the state with an annual operating cost of anywhere between $ 7.5 million and $ 15 million . `` There are plenty of examples of federal Interstate Highway projects in the state of Wisconsin that have terrible , terrible needs right now that are being unmet that to me would be a much better use of transportation dollars , '' Walker said . Officials at the U.S. Department of Transportation said that up to 90 % of the operating costs could have been covered by federal grants . Transportation Secretary Ray LaHood tried unsuccessfully to change Governor-elect Walker 's mind before the funds were pulled . `` There is no shortage of enthusiasm and energy in almost all 50 states in America for some form of high-speed inter-city rail , '' LaHood said . Some of that enthusiasm was found in Florida which put out a request for proposals for a high-speed rail line to link Tampa with several locations in and around Orlando . Even though Florida received an additional $ 342 million from the Department of Transportation for the project , Governor-elect Rick Scott , a Republican , has n't made up his mind on whether he 'll allow it to proceed . Scott has said he is concerned that the price tag for the line would exceed estimates . He is also concerned about operating costs , he said . Florida 's Department of Transportation claims close to 10,000 people would be employed in jobs directly related to the high-speed rail line during the height of construction and thousands more would be employed in indirect jobs . Meanwhile , work is beginning on a section of a high-speed rail line in California that planners hope will one day link Los Angeles with San Francisco .
Wisconsin , Ohio lose $ 1.2 billion in high-speed rail funds . Officials question whether it 's still possible to build big . Comment: `` The estimates , I think , are woefully optimistic , '' says governor-elect .