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.

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.

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.

After a rift between President Trump and billionaire backer Elon Musk erupted publicly, Washington was assessing the damage to Trump's policy priorities and Musk's businesses.

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