UPDATED 6/24/11 2:48 p.m.

It’s a big deal — Honolulu got everything it has asked for so far when it comes to federal funding for rail.

The news that the Federal Transit Administration will give the City and County of Honolulu $55 million in New Starts funding this year to build the rail system could be viewed as a signal that the federal government believes in the project. In all, the city is counting on $1.55 billion in federal funds — about 30 percent of the project’s projected cost.

The $55 million is the same amount that President Barack Obama had requested for Honolulu rail in his original budget proposal. But a hard-fought budget battle with the Republican-controlled House of Representatives shaved total New Starts funding by 20 percent. In the end, those cuts didn’t affect Honolulu’s haul.

The news — which came from the offices of Hawaii’s congressional delegation just after noon Friday — was gleaned from a list of federal appropriations quietly published in [pdf].

“Federal funds are hard to come by in the current budget climate and the fact that Honolulu will receive everything the President asked for is very encouraging,” Sen. Daniel K. Inouye said in the joint press release.

UPDATE: Honolulu Mayor Peter Carlisle welcomed the news.

“This is excellent news and a testament to the strength of Honolulu’s rail project,” Carlisle said in a written statement. “The fact that, in a climate of cutbacks, Honolulu’s project was able to get the full $55 million speaks volumes about the federal support for this project. This is a major achievement and positions us well for future funding requests.”

It’s not immediately clear how the FTA picked which projects would get full funding or when the funds will hit Honolulu’s bank account.

Messages left for representatives of the FTA were not immediately returned.

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