The White House said Tuesday it won’t back down from a legal fight with California Gov. Gavin Newsom (D), who vowed to sue the administration over its $1 billion settlement demand from the University of California,

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.