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.

Gov. Gavin Newsom on Friday suggested California consider withholding tens of billions in annual federal tax dollars amid reports Donald Trump is preparing funding cuts targeting the state. Newsom’s suggestion came after CNN reported the president was considering a “full termination” of federal grant funding for California’s universities.

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.