The Trump administration is preparing to cancel federal funding to California as the president has long railed against the country’s biggest blue state.
The large-scale cancellation of cash could start as soon as Friday, according to CNN, which cited multiple sources, but the White House insisted on Friday that no final decisions have been made.
Agencies were being directed to start identifying grants that could be withheld from California by the administration.
A whistleblower recently told at least one committee on Capitol Hill that all research grants to the state were going to be cancelled, CNN reported.

The move would be a dramatic escalation from the Trump administration after President Donald Trump consistently criticized the state and Governor Gavin Newsom.
Trump recently threatened on social media to strip federal funds from the state for allegedly violating the president’s executive order over the participation of a transgender high school athlete in sports.
In response to the report, the White House slammed California in a statement to Daily Beast but left the door open for action.
“No taxpayer should be forced to fund the demise of our country, and that’s what California is doing through its lunatic anti-energy, soft-on-crime, pro-child mutilation, and pro-sanctuary policies. The Trump administration is committed to ending this nightmare and restoring the California Dream,’ said Deputy Press Secretary Kush Desai in a statement.
“No final decisions, however, on any potential future action by the Administration have been made, and any discussion suggesting otherwise should be considered pure speculation,” he added.
While the extent of the potential cuts are unclear, Democrats were quick to respond to the report.
“My office is engaging local and state partners in preparing for all possible scenarios,” said former Speaker Nancy Pelosi in a statement. “Whatever cruel crusade the President may announce against California, we will fight back.”
Last month, Democrats sounded the alarms after the Trump administration cut funding for flood prevention projects in blue states, including California.