Washington DC - President Donald Trump is reportedly gearing up to cancel a number of federal funding contracts for California to punish the state's Democratic leadership.

According to CNN, the Trump administration has ordered government agencies to begin "identifying grants the administration can withhold" from the state, and sources say they are considering a "full termination of federal grant funding" for the University of California and California State University.

Since he was re-elected, Trump has threatened to take away funding from multiple large universities, including Harvard and Columbia, for refusing to meet his specific demands, such as eliminating diversity, equity, and inclusion programs, and punishing pro-Palestinian protesters for participating in what he has deemed "antisemitic" actions.

Trump has long feuded with California, as it is the nation's largest blue state, which is reflected in their policies and leadership.

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Last month, Trump threatened to withhold funds to the state after a transgender athlete was allowed to participate in a track event, which he argued violated an executive order he signed banning trans women from women's sports.

On Friday, California Governor Gavin Newsom shared an X post with a screenshot of the CNN article and suggested the state should withhold annual federal tax dollars in response if Trump follows through.

"Californians pay the bills for the federal government," Newsom wrote. "We pay over $80 BILLION more in taxes than we get back. Maybe it's time to cut that off, [President Trump]."