WASHINGTON, D.C. – The White House has rescinded a memo from President Trump’s budget office that directed agencies to temporarily freeze federal aid and grant money. This announcement follows legal challenges and confusion across America about the funding pause.
On Monday, the White House Office of Management and Budget sent a memo to federal agencies to pause funding for trillions of dollars in grants and loans. In that memo, it said last fiscal year the government spent more than 3-trillion for federal assistance in grants and loans. The memo goes on to say this temporary pause will provide the administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the president’s priorities.
The memo caused a lot of confusion for nonprofits, schools, and anyone that receives this aid. The White House later clarified things like Social Security and Medicaid would not be impacted.
On Tuesday, a handful of states attorney generals announced they were suing the Trump administration, arguing he doesn’t have that kind of authority to do that. Early Tuesday evening, a federal judge temporarily paused Trump’s funding freeze for a few days.
On Wednesday afternoon, the White House acting director for OMB told agencies that the memo for freezing federal aid has been rescinded.
In social media post, the White House Press Secretary, Karoline Leavitt, said “This is not a rescission of the federal funding freeze. It is simply a rescission of the OMB memo.” She also adds the President’s executive order on federal funding remain in full force and effect and will be rigorously implemented.
Leavitt could be referencing Trump’s executive order last week that told agencies to review and eliminate spending on so-called ”woke” ideologies.
