UC President James Milliken said that the Justice Department had made the proposal to UCLA on Friday, on the heels of the university system’s offer to engage “in good faith dialogue."

The University of California says it is reviewing a $1 billion settlement offer by the Trump administration for UCLA after the government froze hundreds of millions of dollars in funding over pro-Palestinian protests.

The Department of Justice’s proposed $1 billion fine to the University of California at Los Angeles over alleged antisemitism was met with fighting words by the state’s Democrat governor. Gov. Gavin Newsom threatened to sue the Trump administration Friday, describing the fine as “extortion,” KQED reports.