PORTLAND, Ore. (AP) -- The city of Portland is moving ahead on a new streetcar project even though the federal government is dragging its feet.

The Portland City Council has approved $6.3 million for the final design of the Eastside Streetcar Loop that would connect downtown transit with the Oregon Museum of Science and Industry.

Federal funding remains uncertain for $147 million, 3.3-mile project after final design already has been delayed two months pending approval of $75 million from the Federal Transportation Administration.

In June, A federal study of the project's cost effectiveness found it didn't meet the transporation agency's funding requirements.

The Oregon congressional delegation is attempting to bypass the process, while City Commissioner Dan Saltzman says the project is worth the financial risk.