SACRAMENTO, Calif. (AP) — The federal government says California is ineligible for about $12 billion in public transit funding.

Federal law says state and local agencies must protect the interests of their employees to be eligible for public transit grants. A state law that took effect in 2013 made changes to the public pension system.

The Sacramento Bee reports the U.S. Department of Labor recently determined those changes were improper because they were imposed by law instead of the collective bargaining process.

California Gov. Gavin Newsom has called the decision “extremely concerning." He has urged President Joe Biden's administration to overturn the decision.