Trump Administration Rescinds Funding Freeze Memo, but Insists on Spending Pause
The Trump administration withdrew a controversial memo ordering a freeze on federal aid and grant programs but asserted that plans to pause certain types of federal spending remain in effect. White House officials clarified that the withdrawal of the Office of Management and Budget (OMB) memo was a strategic legal maneuver in response to a federal judge's injunction temporarily blocking its implementation.
"This is NOT a rescission of the federal funding freeze," Press Secretary Karoline Leavitt emphasized. "It is simply a rescission of the OMB memo to eliminate confusion created by the court's injunction. The President's executive orders on federal funding remain in full force and effect and will be rigorously implemented."
The move further complicates a chaotic situation that has sparked uproar in Washington. It raises questions about the extent of the president's unilateral power over government spending. On Monday, OMB circulated a directive instructing agencies to halt funding for programs potentially affected by President Trump's executive orders on issues such as climate change, foreign aid, and diversity programs.
The vague language raised concerns about the potential impact on major programs like Medicaid and student loans, as well as grants for smaller programs like Meals on Wheels. Panic escalated when state officials reported being unable to access federal websites for managing Medicaid and Head Start.
Amid Democratic criticism, the administration released a Q&A late Tuesday stating that the freeze did not affect Medicaid, food stamps, Pell grants, rental assistance, or other individual assistance programs. "The pause does not apply across-the-board," it specified.
However, a federal trial court judge in Washington, D.C., granted an injunction against the funding freeze, effective until Monday. The lawsuit was filed by a group of Democratic state attorneys general.
On January 29, the White House issued a brief memo rescinding the previous funding freeze memo. On Wednesday, the Trump administration issued a two-line order rescinding its entirety. In a statement to reporters, Leavitt described the move as a legal maneuver to end the lawsuit and proceed with the administration's spending control plans.
"This action should effectively end the court case and allow the government to focus on enforcing the President's orders on controlling federal spending," Leavitt said. "In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding."