Trump administration rescinds memo to halt federal funding – DW – 01/29/2025
30 Jan 2025
A decision to freeze federal grants and aid had sparked panic, as it was expected to disrupt billions of dollars of spending across healthcare, education and other programs. The move faces several legal challenges.
The Trump administration on Wednesday rescinded a sweeping directive to freeze all federal grants and aid after the move was temporarily blocked by a federal judge.
The funding freeze, which came into action on Tuesday, is believed to have disrupted tens of billions of dollars in spending across healthcare, education, disaster relief, housing assistance and other programs.
A memo sent by the Office of Management and Budget (OMB) to government agencies included a series of yes or no questions including "does this program promote gender ideology?" and "does this program promote or support in any way abortion?"
The move set off a wave of confusion and panic, and raised the possibility of a constitutional crisis.
On Wednesday, White House press secretary Karoline Leavitt said the OMB memo had been rescinded.
However, she claimed the funding freeze remained in force.
"This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo," she said on social media.