Plans for a congestion charge in Cambridge have been put on hold after the government announced it was scrapping a scheme set up to fund it.
Cambridgeshire County Council had bid for £500m from the government's Transport Innovation Fund (TIF) to pay for congestion-cutting projects.
Councillor Roy Pegram described the decision as "bitterly disappointing".
The £500m would have paid for other projects in the county, including a new railway station at Chesterton.
The council has already spent £4.6m of government money on studying the possibility of implementing a congestion charge.
The Department for Transport has announced it will replace the TIF with the Urban Challenge Fund (UCF).
Unlike the TIF, the UCF does not include a requirement for bidders to include a plan to implement a congestion charge, leading to speculation that the charge could be dropped completely.
A spokesman for Cambridgeshire County Council said it was "too early" to know exactly what this would mean for the future of the charge.