Following widespread confusion, lawsuits and backlash, the Trump administration rescinded a memo that attempted to pause federal funding for grants and loan programs.
A memo to heads of executive government departments says, "OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel."
The original memo stated the order was set to go into effect on Tuesday, but was halted after a federal judge granted a "brief administrative stay."
The order stemmed from a lawsuit brought by Democracy First on behalf of the National Council of Nonprofits, American Public Health Association, Main Street Alliance and SAGE.
“Facing legal pressure from our clients and in the wake of a federal judge ruling in our case last evening, the Trump-Vance administration has abandoned OMB’s ordered federal funding freeze. We are proud of our courageous clients -- who represent communities across the nation -- for going to court to stop the administration's unlawful actions," said Skye Perryman, CEO of Democracy Forward.
White House Press Secretary Karoline Leavitt attempted to clarify why the Trump administration rescinded the memo.
"In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage," she stated. "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."
About two dozen states, including New York and California, also sued to fight against the funding freeze, which could have impacted federal infrastructure projects, foreign aid commitments and grants for nonprofit organizations and services.
The proposed pause was not meant to be permanent and was intended to give federal agencies time to ensure their grants, loans and programs comply with Trump administration policies and goals, officials said.
