(KPIX-TV) The state of California is studying ways to suspend financial transfers to Washington after the Trump administration threatened to withhold federal money from sanctuary cities, KPIX 5 has learned.

Officials are looking for money that flows through Sacramento to the federal government that could be used to offset the potential loss of billions of dollars’ worth of federal funds if President Trump makes good on his threat to punish cities and states that don’t cooperate with federal agents’ requests to turn over undocumented immigrants, a senior government source in Sacramento said.

The federal funds pay for a variety of state and local programs from law enforcement to homeless shelters.

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