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Wisconsin can keep only a fraction of the $810 million it won in federal high-speed rail money, while the rest will help fund train lines in California, Florida, Illinois and other states, the U.S. Department of Transportation announced Thursday.

Governor-elect Scott Walker had vowed to kill the planned 110-mph Milwaukee-to-Madison passenger train route that was to be funded with Wisconsin's share of $8 billion in federal stimulus dollars. Ohio Governor-elect John Kasich had issued a similar promise for a planned 79-mph line connecting his state's three largest cities, funded by $400 million in stimulus cash.

Now, almost all of the $1.2 billion from the two projects will be divided among other states. California is the big winner, with up to $624 million, followed by Florida, up to $342.3 million; Washington, up to $161.5 million; and Illinois, up to $42.3 million. Smaller amounts will go to New York, Maine, Massachusetts, Vermont, Missouri, Oregon, North Carolina, Iowa and Indiana.

The announcement from U.S. Transportation Secretary Ray LaHood held out some hope that Wisconsin may not be on the hook for all of the $9 million or so it has already spent on the project, plus another $5.25 million in cancellation fees and other contractual commitments. Ohio was allowed to keep $15 million that had been committed for preliminary work, and federal rail officials "will work with these states to determine whether they have already spent money under their contracts that should be reimbursed," the announcement said.

Walker said he talked with LaHood on Thursday morning and was assured that Wisconsin would not have to repay money already spent.

Wisconsin also was allowed to retain up to $2 million to fund upgrades on Amtrak's existing Milwaukee-to-Chicago Hiawatha line. But that won't cover the $19.4 million cost of renovating the train shed at Milwaukee's downtown Amtrak-Greyhound station or the $52 million cost of building a new maintenance base for two newly purchased trains, two projects that would have been included in the original $810 million budget.

Outgoing Democratic Gov. Jim Doyle had suggested Walker's stand also would jeopardize a separate $12 million grant for upgrades to a Hiawatha crossing and the Mitchell International Airport station platform, but the federal announcement made no mention of withdrawing that money.

In a meeting with reporters in Pewaukee, Walker called the decision a "victory" because he sees the rail line as a symbol of excessive government spending.

"That's the decision they've made and we're going to move forward," Walker said.

Even with the federal government paying all construction costs, Walker has said he didn't want state taxpayers to bear any of the operating costs. The state initially estimated those costs at $7.5 million a year, after subtracting fare revenue, but revised ridership estimates could have cut taxpayers' share by $2.8 million. The state also could have used part of its federal highway funds to cover 80% to 90% of the taxpayer share.

The Milwaukee-to-Madison line would have been an extension of the Hiawatha. It eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains.

It was not immediately clear how Thursday's announcement would affect a separate study, led by Minnesota, of how to connect Milwaukee and the Twin Cities by high-speed rail. Most of the 14 options under review in that study run through Madison, although one follows the current route of Amtrak's long-distance Empire Builder and two others run through Fond du Lac, Neenah and Stevens Point.

Doyle called the loss of the high-speed rail funds a "tragic moment for the state of Wisconsin."

"Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states," Doyle said in a written statement. "Bogus arguments that this money can be used for roads have been proven false ... Together with many others I have worked hard to move Wisconsin into the future. I obviously am deeply saddened to see us take a major step backward."

The state Department of Transportation had projected that rail-related jobs would peak at 4,732 in 2012, counting those in direct construction, at supply companies and in government. Also, 55 permanent jobs would be created to operate and maintain the trains, tracks and stations. Supporters say many more jobs would be created by the project's spinoff impact on the economy.

Statements from other elected officials broke down along party lines.

"This is a terrible loss of family-supporting, good-paying jobs in Milwaukee and throughout the state of Wisconsin, and a shameful slap in the face to all the workers who would have benefitted from this significant investment in transportation and infrastructure," said Milwaukee Mayor Tom Barrett, the Democrat who lost the gubernatorial election to Walker.

"With so many construction workers out of work, this project could have been the perfect spark to help turn the economy around. Someday soon the governor of California, New York or Illinois will christen their high-speed rail line, and it will be called the 'Badger line.' "

U.S. Rep. F. James Sensenbrenner, a Menomonee Falls Republican, said, "It is to the Wisconsin taxpayers' benefit that they will no longer be required to pick up the additional tab for a high-speed train that the majority of residents will never ride." But Sensenbrenner said it was a mistake to redistribute the money to other states "instead of returning that money to the U.S. Treasury Department and using it to help pay down our deficit, as I've called for in legislation I introduced in Congress."

U.S. Rep. Gwen Moore, a Milwaukee Democrat, said, "A month before he's even been sworn into to office, Governor-elect Walker has lost good jobs for Wisconsinites."

U.S. Rep. Tammy Baldwin, a Madison Democrat, added, "We are witnessing the ugly triumph of politics over progress and the people of Wisconsin will suffer the consequences for decades to come."

And state Rep. Tamara Grigsby (D-Milwaukee) said, "This is nothing short of economic suicide."

Despite the announcement, rail supporters say they will go ahead with a planned rally Monday at City Hall. That rally now will focus on protesting the federal decision and Walker's stand, the state AFL-CIO said.

The rally was timed to come just before the Common Council's Judiciary and Legislation Committee was to consider a resolution supporting the Milwaukee-to-Madison line and the broader Midwestern rail plan. It was not immediately clear Thursday what would happen to that measure.