HONOLULU -- The federal government has pulled the plug on $20 million worth of funding for the city's bus rapid transit project.

Mayor Jeremy Harris' Administration said it will press on, using city funds for the project. The plan will create new bus lanes going from Iwilei to Waikiki.

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It's extremely rare for the U.S. Transportation Department to rescind money for a major project such as this. However, the city's managing director said he hopes the city can regain the money through some congressional maneuvering.

The city has already spent about $20 million widening sidewalks and re-doing bus stops along Kuhio Avenue in Waikiki. It plans to spend another $20 million on new buses and on widening a five-mile portion of Ala Moana Boulevard from Waikiki to Iwilei.

The Federal Transit Administration had committed to giving the city about $20 million for the project, but the FTA rescinded its funding, because the city did not follow federal laws and regulations.

"I don't think these letters from the FTA, saying that we're not going to get this funding using the 'new starts' money, is going to impact what we're doing with the first phase of the bus rapid transit," city Managing Director Ben Lee said.

In a letter to the city, FTA official Leslie Rogers wrote, "Unfortunately, the Department of Transportation Services' actions to begin incurring costs in the final design and construction... absent, required FTA approvals precludes further FTA participation."

The city plans to add one lane going into Waikiki on Ala Moana Boulevard, which would be reserved for buses as part of the bus rapid transit project. A new lane leaving Waikiki would be for a mix of all vehicles.

Councilman Charles Djou said the plan doesn't make sense.

"It never received state support. Now, it apparently doesn't have federal support. It's time for the city government to pull the plug on the BRT," Djou said.

In March, a majority of council members asked the mayor to delay the project until the city got federal funding for it. However, the mayor ignored the council's request, calling their actions "infantile" and "shameful."

Lee said Hawaii Sen. Dan Inouye is working to save those $20 million in federal transit money for Honolulu.

"It seems like we have a solution thanks to the senior senator to, basically, reprogram and re-appropriate that money for bus facilities and bus improvements and transportation improvements in Kapolei," Lee said.

Lee said the city moved ahead with the project before getting FTA approval because $30 million in city funding was going to lapse if the city didn't complete plans and award a contract by the end of last year.

With Harris' term coming to a close it will be up to the new mayor to decide whether to keep going forward with the next phase of bus rapid transit.