SACRAMENTO — California’s high speed rail project faces a federal audit in the face of skyrocketing costs, the Associated Press reports.

The audit by the inspector general, announced earlier this week, will examine the Federal Railroad Administration’s oversight of about $3.5 billion in federal grants for the project.

The estimated cost for the system to link Los Angeles and San Francisco, with a trip taking less than three hours, has climbed to $77 billion. A report released by the high speed rail authority in March shows it does not have the $30 billion needed to complete the first phase, between the San Joaquin Valley and San Francisco.