The White House indicated Tuesday that it was ready to battle with Gov. Gavin Newsom, who has threatened to sue over UCLA grant freezes. On the line are $584 million in frozen federal funds to campus.

California Gov. Gavin Newsom has already wagged his finger at the Trump White House for demanding “ransom” and changes to the admissions and hiring policies. The federal administration, in return, would unfreeze more than $500 million in frozen federal grants.

A White House official says the Trump administration is seeking a $1 billion settlement from the University of California, Los Angeles.