US President Donald Trump has continued to escalate tensions with California by calling on the state to return billions in federal funds for a high-speed rail.
His administration plans on cancelling $929 million in grants for what Trump has called a “failed” project.
These federal funds account for a quarter of the California rail project.
Democratic Governor Gavin Newsom called it “political retribution” for the California-led lawsuit against Trump’s national emergency declaration.
The Trump administration announced on Tuesday that it is looking into cancelling the grant as well as recovering a $2.5bn grant already being spent by the state.