White House Rescinds Memo on Federal Funds Freeze

January 29, 2025
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This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. 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.

White House Press Secretary Karoline Leavitt on X, announcing on Wednesday the rescission of a memo that ordered the temporary freeze of federal funds. The decision to rescind came after a federal judge blocked the implementation of the memo on Tuesday.

What Happened: The White House has rescinded a memo it issued on Monday directing the temporary freeze of federal funds related to programs outlined in President Trump’s executive orders.

  • What did the original memo state? The memo, issued by White House Office of Management and Budget (OMB), directed all federal agencies to identify and review programs and “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders.”
  • The memo raised questions about which federally funded programs would be impacted by a temporary freeze. In a press briefing Tuesday, White House Press Secretary Karoline Leavitt explained individual assistance programs such as Social Security, Medicare, food stamps and welfare would not be impacted, and that the directive was only intended to ensure alignment to the president’s executive orders.
  • What did lawmakers say? “I think this is something that the American people will approve of. I think they want us to be good stewards of the precious treasure of the American taxpayer,” House Speaker Mike Johnson (R-LA) said. Senate Minority Leader Chuck Schumer (D-NY), however, called the directive “lawless, dangerous, destructive, cruel. It’s illegal, it’s unconstitutional.”

Read More: Trump White House rescinds freeze on federal grants, reversing course (The Washington Post)

What does Trump’s federal funding freeze mean for people who get aid? (CBS News)

by Stephanie Wagner, based in Florida

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