The Trump administration is preparing to cancel a large swath of federal funding to California, an effort which could begin as soon as Friday, according to multiple sources.

Gov. Gavin Newsom on Friday suggested California consider withholding tens of billions in annual federal tax dollars amid reports Donald Trump is preparing funding cuts targeting the state. Newsom’s suggestion came after CNN reported the president was considering a “full termination” of federal grant funding for California’s universities.

The threat to cut off California follows a 315-page report published by the Federal Railroad Administration that claims California has missed several deadlines related to the high-speed rail and has failed to identify how it will secure $7 billion in funding to build a segment of rail between Merced and Bakersfield,