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.

Trump’s team is asking federal employees to develop rationales for funding cuts to the state, including citing noncompliance with the president’s executive orders.

President Trump and Elon Musk clash over "EV Mandate", with Tesla being one of the best selling cars in California, will it affect the state?

President Donald Trump said billionaire Elon Musk would face “serious consequences” if he threw his support behind Democrats running against Republican backers of the so-called Big Beautiful Bill. Trump issued the threat in a phone interview with NBC on Saturday,

Donald Trump said on Saturday his relationship with his billionaire donor Elon Musk is over and warned there would be "serious consequences" if Musk funds U.S. Democrats running against Republicans who vote for the president's sweeping tax and spending bill.