NEW: Trump Rescinds OMB Memo on Federal Spending Freeze

President Trump on Wednesday rescinded his OMB memo on his federal spending freeze.

The White House clarified that Trump did not rescind the federal funding freeze.

“It is simply a rescission of the OMB memo,” White House Press Secretary Karoline Leavitt said. “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,” Karoline Leavitt added.

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.

— Karoline Leavitt (@PressSec) January 29, 2025

On Monday, Trump’s Office of Management and Budget (OMB) put a temporary pause of agency grant, loan and other financial assistance programs.

“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 OMB said.

“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,” the OMB memo said.

This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and thePresident’s priorities. The temporary pause will become effective on January 28, 2025, at 5: 00 PM. Even before completing their comprehensive analysis, Federal agencies must immediately identify any legally mandated actions or deadlines for assistance programs arising while the pause remains in effect. Federal agencies must report this information to OMB along with ananalysis of the requirement. OMB also directs Federal agencies to pause all activities associated with open NOFOs, such as conducting merit review panels,” the OMB added.

NBC News reported:

President Donald Trump’s administration on Wednesday rescinded an order putting a widespread freeze on most federal grants and loans amid significant criticism, according to a new memo a source provided to NBC News.

A senior administration official confirmed the rescission Wednesday.

The initial order, which sparked chaos and confusion across Washington, was temporarily halted by a federal district judge Tuesday evening.

The directive from the Office of Management and Budget came Monday night, directing federal agencies to “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, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”

A judge temporarily blocked Trump’s order to freeze federal funding on public loans and grants.

Judge Loren AliKhan, a Biden appointee, granted a temporary stay on Trump’s plan to freeze federal funding.

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