The original White House order freezing federal grants, which became
public on Monday, caused mass chaos and confusion across Washington,
appearing to imperil government programs that fund schools, provide
housing and ensure low-income Americans have access to health care.
> States reported issues accessing funds under Medicaid, and even as of
Wednesday, public housing authorities reported being locked out of their
funding portal. White House spokeswoman Karoline Leavitt said Tuesday
that assistance for individuals would not be affected.
The Trump administration withdrew the order a day after a federal
judge in Washington, D.C., temporarily halted its implementation until
Feb. 3, allowing public health advocates, nonprofits and businesses –
represented by the left-leaning group Democracy Forward – more time to
challenge the directive’s legality.
Separately, roughly two dozen state
attorneys general filed their own lawsuit against the administration on
Tuesday, arguing the pause to federal spending had harmed their
citizens.
- A White House spokeswoman did not immediately return a request for comment, however Trump’s press secretary took to X to tweet that the move is not a rescission of the federal funding freeze.
“It is simply a rescission of the OMB memo,” Karoline Leavitt wrote.
“Why? To end any confusion created by the court’s injunction. The
President’s EO’s on federal funding remain in full force and effect, and
will be rigorously implemented.”
OMB memorandum M-25-13 “is rescinded.”
Trump Reverses Spending Freeze Order That Sparked Chaos
Trump's Federal Worker Buyout Isn't a Buyout. It's a Deferred Resignation
Trump White House rescinds freeze on federal grants, reversing course
The budget office came under immense pressure over the impacts of a sudden pause in key government spending.
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