(Reuters) -The U.S. Transportation Department said on Tuesday it is cancelling $175 million for four projects that are part of California's high-speed rail project, following cancellation of $4 billion in federal grants for the state's ambitious but much-delayed high-speed rail project in July.

The Trump administration said Tuesday it will withdraw funding for grade separation, overcrossing, design work and to build a high-speed rail station in Madera. California in July sued to challenge the withdrawal of funding, calling the decision illegal.