The Trump administration has said it will cancel almost a billion dollars in federal grant money intended for the California High-Speed Rail Authority, according to a letter Tuesday from the Transportation Department.

It's the latest round in the battle between California and the Trump White House focusing on crime, immigration and environmental matters.

Just a week ago, recently elected Calif. Gov. Gavin Newsom used his state-of-the-state address to announce a proposal to end the state's long-delayed and expense-plagued effort to build the high-speed rail link between San Francisco and Los Angeles. Newsom cited the cost of the program and the length of time it would take to complete.

The state should continue to build a section of high-speed rail between Merced and Bakersfield in California's central valley, Newsom said, because giving up that part of the project would mean returning $3.5 billion to the federal government, according to the report.

It's not known if the federal government has the authority to withhold the grant. The New York Times noted Tuesday evening that the department is also "actively exploring every legal option" to take back $2.5 billion in federal grant funds already given to the state for the rail line.