A day after California Gov. Gavin Newsom announced the decision to discontinue a high-speed rail project, President Donald Trump claimed the state owed the federal government money.

"California has been forced to cancel the massive bullet train project after having spent and wasted many billions of dollars. They owe the Federal Government three and a half billion dollars. We want that money back now. Whole project is a 'green' disaster!" Trump tweeted Wednesday.

Newsom responded to the claims by tweeting "Fake news. We're building high-speed rail, connecting the Central Valley and beyond. This is CA's money, allocated by Congress for this project. We're not giving it back. The train is leaving the station — better get on board!"

“Also, desperately searching for some wall $$??” he added.

During his first State of the State speech Tuesday, Newsom said he was pulling the plug on the project that would have connected San Francisco and Los Angeles.

"Let's level about the high-speed rail. Let's be real: The current project as planned would cost too much and, respectfully, take too long. Right now, there simply isn't a path to get from Sacramento to San Diego, let alone from San Francisco to L.A. I wish there were,” he said.

He, however, said they have the “capacity to complete” a high-speed rail project between Bakersfield and Merced, which is a 119-mile stretch of rail line.

"Critics are going to say that's a train to nowhere, but I think that's wrong and that's offensiveMerced, Fresno, Bakersfield and communities in between are more dynamic than people realize. The Valley may be known around the world for agriculture but there's another story ready to be told,” he said.

The project was estimated to cost $77 billion, and be completed in 2033.

The Investor’s Business Daily reported the $3.5 billion was given to the state by the federal government as part of former President Obama's 2009 "stimulus" plan, out of which, California spent roughly $2.5 billion so far.

Newsom said he wants to hold on to the $3.5 billion fund.

"I am not interested in sending $3.5 billion in federal funding that was allocated to this project back to Donald Trump," he said, the San Fransico Gate reported.

Post his announcement Tuesday, House Minority Leader Kevin McCarthy praised the governor’s move and said, "The train to nowhere is finally stopped. This is the right move by @GavinNewsom... I look forward to working w/ Governor Newsom and federal officials in the coming weeks to best mitigate what has already been wasted on high-speed rail due to the previous Administration."