Ending its legal challenge while making sure President Trump’s agenda remains on track…
The White House Office of Management and Budget (OMB) has lifted a federal grant and spending freeze, reversing course after a federal judge temporarily blocked its effort to pause potentially trillions in funding for an ideological review. The freeze had sparked confusion and fear, in some quarters, over which grants, loans and financial assistance programs might be affected.
The decision highlights ongoing legal and political battles over federal spending policies, as the Trump administration seeks greater control over how taxpayer dollars are allocated.
🚨 Trump’s White House OMB rescinds federal aid freeze. pic.twitter.com/u6lyLSQQhu
— Peter Alexander (@PeterAlexander) January 29, 2025
The Wall Street Journal has more details on the memo before it collapsed:
The White House issued a memo sent to federal employees Wednesday scrapping its original order, according to a document viewed by The Wall Street Journal.
The initial order was sent to agencies late Monday by the White House Office of Management and Budget, setting off a temporary pause of the grants to give agencies time to review spending priorities. The White House said the pause was for the administration “to be good stewards of taxpayer dollars.”
The order threw state and federal agencies into chaos as organizations struggled to access funding portals dealing with Medicaid, emergency aid and low-income education and nutrition services. A judge temporarily blocked the implementation of the effort on Tuesday night, shortly before the order was set to take effect.
White House Press Secretary Karoline Leavitt issued the following statement via email after the memo’s retraction, underscoring the administration’s intentions and priorities:
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage. The executive orders issued by the president on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments. This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
President Donald Trump also addressed the controversy at the White House, criticizing the media’s portrayal of the memo as a threat to Social Security and Medicare. He clarified that its true purpose is to ensure responsible management of federal funds and prevent wasteful spending.
BREAKING: President Trump just dismantled the fake media narrative on the funding freeze.
— Eric Daugherty (@EricLDaugh) January 29, 2025
TRUMP: I am restating right now – the media has purposefully created confusion… Social Security and Medicare has not been impacted by any action we have taken in any way, shape or form.… pic.twitter.com/Z7v7uLMRjv
Federal spending and grant allocations are governed by a complex framework of laws and regulations, including the Federal Grant and Cooperative Agreement Act of 1977, which sets key guidelines for the use of federal funds. As these debates unfold, the balance of power among the three branches of government will remain a central issue in Washington.
This is a breaking news story. Please check back for updates.
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So Obama was allowed to withhold federal funds from states unless they adopted his school lunch policies, and that was acceptable, but Trump can’t withhold federal funds to scrutinize discriminatory DEI policies?!!
How stupid must you be to start shutting down programs and payment when you don’t even know what they are for? Oh that’s right You’re Donald “clueless” Trump