By Courtney Rozen WASHINGTON (Reuters) -Federal employees can get permission to work from home or adjust their hours to accommodate religious fasts and prayers, the Trump administration said on Wednesday,

If California's legal challenge can't stop the Trump administration from withholding funds, the Education Department said over 100 employees could be affected.

With the change, the Trump administration has also backed away from a signature effort to stay ahead of China in the A.I. race. The U.S. government had been concerned that the Chinese military could use A.I. chips to coordinate attacks and develop weapons and had also wanted to preserve the U.S. lead in developing A.I. systems.

President Donald Trump's administration has told a federal judge that it cannot be ordered to disclose federal agencies' reorganization and mass layoff plans as part of a lawsuit seeking to block them from being implemented.

The Supreme Court decision this week giving President Donald Trump the go-ahead to largely dismantle the Department of Education is just one development this summer in what has been a broad federal retreat from education.

Cleveland is bracing for a potential $28 million shortfall in federal funding that could devastate the community development department and a dozen neighborhood nonprofits.

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Maryland has the nation's second-highest concentration of federal workers, and hundreds have either lost their jobs, taken buyouts, or resigned.