The Trump administration says it has terminated an agreement with California that would have directed nearly $1 billion toward the state’s high-speed rail project.

The U.S. Transportation Department said Thursday in a statement that it would “deobligate” $928,620,000 in funds for the project, saying the California High-Speed Rail Authority “repeatedly failed to comply” with the agreement and “has failed to make reasonable progress.” The department announced its intention to end the agreement with California in February.

In a statement on Thursday, California Gov. Gavin Newsom (D) accused the Trump administration of exacting “political retribution.”

“The Trump Administration’s action is illegal and a direct assault on California, our green infrastructure, and the thousands of Central Valley workers who are building this project,” Newsom said.

He added: “This is California’s money, appropriated by Congress, and we will vigorously defend it in court.”