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.

California officials on Friday braced for what they believe is a significant escalation in President Donald Trump‘s efforts to squeeze the state financially, possibly cutting off all federal funding to the University of California and the California State University systems.

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,