By Annie Grayer, Gabe Cohen and Betsy Klein, CNN

The Trump administration is preparing to cancel a large swath of federal funding for California, an effort that could begin as soon as Friday, according to multiple sources.

Agencies are being told to start identifying grants the administration can withhold from California. Sources said the administration is specifically considering a full termination of federal grant funding for the University of California and California State University systems.

A White House official said Friday afternoon that no final decision had been made on the cuts.

Singling out one state for massive cuts would be an unusual move, but President Donald Trump has long made Democratic-led California a target.

Just last month, he threatened to withhold federal fu

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