A high-speed train project in California is losing its federal funding, the Department of Transportation says. The Trump administration said it had determined that the railroad authority did not live up to terms that it agreed to in its initial federal contracts.

President Donald Trump’s feud with California Governor Gavin Newsom is hitting the Golden State’s long-awaited high-speed train project with yet another setback. The U.S. The Transportation Department announced Wednesday that it is rescinding $4 billion in funding for a bullet train project that aims to connect Los Angeles with San Francisco.

U.S. President Donald Trump said on Wednesday the Transportation Department is rescinding $4 billion in U.S. government funding for California's High-Speed Rail project.