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A new high-speed rail service from Los Angeles to Las Vegas has been given the green light, and US$2.5B in federal funds to secure its construction.

Known as Brightline West, the service will operate trains capable of speeds of 300kph.

The privately owned rail line will run electric trains from Las Vegas to Los Angeles cutting the travel time to two hours.

“Building a high speed rail corridor from Las Vegas to Southern California will drive economic investment and opportunity across the region,” U.S. Transportation Deputy Secretary Polly Trottenberg said.

“Residents and visitors alike will benefit from access to a fast and sustainable travel option that better connects key cities.”

Owners of the service are aiming to open the line in time for the 2028 Summer Olympics in Los Angeles.

Brightline currently operates services in Florida between Orlando and Miami, taking travellers between the two cities in about 3 1/2 hours.