President Donald Trump rescinded the Office of Management and Budget (OMB) memo on freezing federal funding.
White House Press Secretary Karoline Leavitt clarified that the action was “NOT a rescission of the federal funding freeze.” It is “simply a rescission of the OMB memo,” she wrote on X.
“Why? To end any confusion created by the court’s injunction,” Leavitt explained. “The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
On Monday, the OMB temporarily paused federal grants and loans.
“The American people elected Donald J. Trump to be President of the United States and gave him a mandate to increase the impact of every federal taxpayer dollar. In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans,” the memo said, adding, “This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.”
A judge temporarily blocked the order on Tuesday.
Senator Susan Collins (R-ME), Chair of the Senate Appropriations Committee, declared she is “pleased that OMB is rescinding the memo imposing sweeping pauses in federal programs. While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”
Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, said the OMB memo rescission is an “important victory for the American people whose voices were heard after massive pressure from every corner of this country—real people made a difference by speaking out.”
“Still, the Trump administration—through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law—caused real harm and chaos for millions over the span of the last 48 hours which is still ongoing,” Murray stated. “This fight is far from over; the Trump administration is still illegally withholding funding for communities in red states and in blue states.”
