Washington (CNN) The Defense Department has decided not to proceed with three border wall projects in California and Arizona, citing "insufficient contract savings," according to a court filing.

The move appears to be a setback for President Donald Trump, who has sparked controversy for dipping into Pentagon funds to build his signature border wall, though it's unclear what will happen to the projects listed in the filing.

Last month, Secretary of Defense Mark Esper approved an additional 20 miles of 30-foot-high barriers for the southern border using $2.5 billion in funds redirected from a counter drug account, which is authorized to spend money on border barrier construction for the purpose of blocking "drug-smuggling corridors."

Although then-acting Defense Secretary Patrick Shanahan had earlier approved some 135 miles of fencing requested by the Department of Homeland Security in the Yuma, El Paso and Tucson sectors, the cost of constructing that section of the border wall was less than originally anticipated, freeing up funds to support the additional 20 miles approved by Esper.

The Pentagon notified the court of the additional miles at the time, noting the Army Corps wouldn't know the exact amount of savings to move forward with the projects until later in the fiscal year.

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