The White House has rescinded a memo that ordered a freeze on federal grants and loans, but maintains a 'federal funding freeze' is in effect to review programs for compliance with President Trump's agenda. The original memo, temporarily blocked by a federal judge, aimed to align federal spending with Trump's executive orders.
The White House formally rescinded a controversial memo that had ordered a freeze on federal grants and loans. However, the White House also stated that a 'federal funding freeze' remains in 'full force and effect' to allow agencies time to review programs for compliance with President Donald Trump 's agenda. The freeze, initially scheduled to take effect late Tuesday afternoon, was temporarily halted by a federal judge on Tuesday to consider arguments challenging its legality.
White House spokesperson Karoline Leavitt confirmed the rescission in a tweet, clarifying that 'This is NOT a rescission of the federal funding freeze.' Leavitt emphasized that 'The President's on federal funding remain in full force and effect, and will be rigorously implemented.' In its original memo, the Office of Management and Budget (OMB) stated that the freeze aimed to ensure federal agency disbursements aligned with Trump's executive orders. The OMB claimed these orders sought to eliminate alleged 'Marxist equity, transgenderism, and green new deal social engineering policies.' Acting OMB Director Matthew Vaeth issued a new memo on Wednesday, rescinding OMB Memorandum M-25-13. He instructed agencies with any questions regarding implementing the President's Executive Orders to contact their agency General Counsel. Leavitt, in a statement to CNBC, explained that the rescission was undertaken due to the injunction and to prevent confusion caused by the court ruling and media coverage. She stated, '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.'Senate Minority Leader Chuck Schumer, D-N.Y., reacted to the news by calling on Trump to 'rescind Russell Vought's nomination' for OMB director, stating, 'Russell Vought is the chief cook and bottle washer.' Schumer expressed concern that the administration might attempt to implement the freeze through other means, saying, 'We believe they'll come back and try to do this in other ways. Russell Vought sat in my office and said he was going to do it.' He concluded, 'We don't believe they'll stop. This has been their goal, to hurt what they're basically doing is being lawless, to hurt families, to help their billionaire friends. And so they're going to keep at it. We're going to keep at it. I don't think this would have happened except for the outcry throughout America.'Skye Perryman, CEO of Democracy Forward, the advocacy group that represented the nonprofits challenging the original memo, credited the lawsuit and the judge's stay of the freeze for prompting the Trump administration's retreat. Perryman stated, 'We are proud of our courageous clients — who represent communities across the nation — for going to court to stop the administration's unlawful actions.' While expressing hope for relief for millions affected, Perryman condemned the Trump-Vance administration's approach, calling it 'harmful and callous.
FEDERAL FUNDING WHITE HOUSE DONALD TRUMP OMB EXECUTIVE ORDERS LAWSUIT JUDGE
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