The Auckland Mayor is accusing the government of "electioneering" and says there will be consequences for the city's residents.
Wayne Brown has told Auckland Transport to stop work on all projects funded by the soon to be scrapped Regional Fuel Tax.
Transport Minister Simeon Brown responded by saying the government would legislate to ensure the remaining funds were used for projects it considered a priority.
"Those priorities are the Eastern Busway, City Rail Link electric trains and stabling, and road corridor improvements," he said.
Wayne Brown told Morning Report the Eastern Busway and getting trains underground on the City Rail Link had already been agreed to.
"That uses up the money that is left... and we're quite happy about that, we've both agreed that we would do those particular things."
However Aucklanders were not happy about further interference from Wellington, he said.
Brown said Auckland Council was the only council without control of its Regional Land Transport Plan, but he believed the government would pass legislation to change that.
The mayor had ruled out raising rates to pay for transport projects.
"If they want to reduce costs we'll do less because I'm not going to put up rates just so they can say 'we've saved everybody money'."
"That tax funds roads, it funds buses... it's electioneering, that's what they did, and they're entitled to do that," he said.
"But it has consequences and the consequences are if we haven't got the money we're not going to do those things."
Improvements to Glenvar and Lake Roads were among projects not likely to go ahead, Brown said.
He said there were still discussions to be had and work to be done on an Integrated Transport Plan before the full consequences were known.
'Omnishambles' with hot train tracks
Brown is also seeking answers from Auckland Transport, KiwiRail and Auckland One Rail about problemswhich caused train cancellations in the city on Monday.
"When there is a problem, slinging abuse at each other...is not a sensible solution."
Passengers were left with confusing messages, Brown said.
He said the parties will be in his office on Wednesday afternoon to be "barked at".