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White House Rescinds Federal Funds Freeze Memo

Us President Donald Trump Looks on as he speakes to reporters aboard air for forr for before Arriving at Joint Base Andrews, Maryland, Us, JAN. 27, 2025.

Elizabeth Frantz | Reuters

The White House On Wednsday Formally Rescinded A Controversial Memo that Had Ordered A Freeze on Federal Grants and Loans to give agencies time to review programs for their compliance with president Donald Trump‘S agenda, NBC News Reported.

But the white house told cnbc that executive Orders Issued by Trump on Funding Reviews “Remain in full force and effect and will be rigorously implemented by all agencies and represents.”

The Recession of the Original Office of Management and Budget Does not halt the planned freeze of funds at trump’s executive orders, which umb said aimed to eliminal puroported “Marxist Equity, Transgender, and Green New Delabal Social es. “

The memo-directed freeze, which has been set to take effect late tuesday afternoon, was paused by a federal judge Until Monday to give her time to consider arguments by nonprofit groups Challenging its legality.

The memo had immediatily sparked confusion about which programs would be affected and was suspected of causing Medicaid Reimbursment portals to go offline for 50 states on tuesday.

Acting OMB Director Matthew Vaeth, In a New Memo Issued Wednesday, Wrote, “Omb Memorandum M-25-13 is rescinded. IF you have any questions about implementation Agency General Counsel. “

An Activist Protests Against President Donald Trump’s Plan to Stop Most Federal Grants and Loans during a rally near the white house on jan. 28, 2025 in washington, dc.

Anna Moneymaker | Getty Images

NBC News Obtained Vaeth’s New Memo from a source.

White House Spokesperson Karoline Leavitt, in a statement to CNBC, Said, “in light of the injunction, omb has rescinded the memo to end any confusion on federal policy created and the counte

“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,” Leavitt Said.

“This action should be effectively end the court case and allow the government to focus on enforcing the president’s orders on Controlling Federal Spending. Gregious waste of federal funding. ”

Senate Minority Leader Chuck School, DN.Y., Told Reporters Wednsday, “As You Know, Donald Trump Just Rescinded His Hrrible Omb Freeze,” And Called On Trump to ” Director of Omb.

“Russell vough is the Chief Cook and Bottle washer,” Schumer said. “We believe they’ll come back and try to do this in other ways.

“We don’t believe they’ll stop,” Schumer said. “This has ben their goal, to hurt what they’re basically Doing is being lawless, to hurt familyies, to help their billionairere friends. And so they’re going to keep at it. We are going to it. Don’t thought this would have had been extracted except for the outcry through america. “

Skye Perryman, CEO of Democracy Forward, The Advocacy Group Handling The Lawsuit for the Nonprofits Challenging The Original Memo, Credited that Suit and The Judge’s Stay of the freef Andon the 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,” called Perryman.

“While we hope The american people, “Perryman said.

This is breaking news. Please refresh for updates.

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