The Trump administration plans to cancel $929 million in U.S. money for California's beleaguered high-speed rail project and wants the state to return an additional $2.5 billion it's already spent.
The U.S. Department of Transportation announcement Tuesday came after threats from President Donald Trump to make California pay back the money awarded to build the train between Los Angeles and San Francisco.
The project has faced cost overruns and years of delays.
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The Trump administration argues California hasn't provided required matching dollars and can't complete work by a 2022 deadline.
Gov. Gavin Newsom's office and California rail officials didn't immediately comment.
Last week, Newsom said the rail project "as currently planned, would cost too much and take too long." He wants to refocus on building a line in central California.
