Trump Admin Rescinds Freeze Memo, Plans to Pause Funding
Washington, DC - The Trump administration has withdrawn its controversial memo ordering a freeze on federal aid and grant programs. However, officials emphasize that they will continue plans to pause certain types of federal spending.
The move follows a federal judge's order temporarily blocking the memo. White House press secretary Karoline Leavitt clarified in a statement that the memo withdrawal is a legal strategy and does not constitute a rescission of the administration's funding freeze.
The administration's initial memo led to confusion and disruption. State officials reported access issues to Medicaid and Head Start websites. After facing criticism from Democrats, the administration released a Q&A stating that core assistance programs such as Medicaid would not be affected by the freeze.
Despite the memo's rescission, the Trump administration remains committed to implementing the funding freeze. Justice Department attorneys have filed a motion arguing that the lawsuit challenging the memo is now moot.
The national Medicaid association and state offices report restored access to program websites. Trump administration officials previously denied any connection between the website outage and the freeze memo.
Jordan Weissmann, a senior reporter at Yahoo Finance, notes that the episode has raised questions about the administration's approach to government spending control. In the coming months, the administration is expected to continue taking executive actions to curb federal spending.