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The Trump administration said on Thursday it was formally cancelling $929 million in previously awarded funding for California's high-speed rail program after rejecting an appeal by the state. The U.S. railway regulator, the Federal Railroad Administration (FRA), said on Thursday it had canceled the funding awarded in a 2010 agreement after it said the state had "repeatedly failed to comply" and "failed to make reasonable progress on the project." In a statement, the FRA said it was still considering "all options" on seeking the return of $2.5 billion in federal funds the state has already received. The decision is the latest salvo in an ongoing battle between the administration of U.S. President Donald Trump and California over a series of issues including immigration, vehicle emissions standards and internet policy. The largest U.S. state has repeatedly sued the Trump administration and officials expect the state will sue over the rescinding of rail funding.