On Wednesday, January 29, The Washington Post reported that the White House budget office retracted an order freezing federal grants, according to a copy of a memo the reporters obtained. This was after the current administration's announcement to freeze federal grants led to a significant backlash.
In the memo, Matthew J. Vaeth, acting director of the White House Office of Management and Budget (OMB), stated that the memorandum M-25-13 "is rescinded," Washington Post's Jeff Stein and Tony Romm shared. The memorandum, released on Monday, directed federal agencies to "temporarily pause all activities related to obligations or disbursement of all federal financial assistance."
The current administration withdrew the order a day after federal judge Loren AliKhan temporarily blocked its implementation. Democracy Forward, a progressive nonprofit group, filed the lawsuit against OMB.
"This is NOT a rescission of the federal funding freeze," White House Press Secretary Karoline Leavitt shared on X. "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."
"Though the Trump Administration failed in this tactic, it's no secret that they will try to find another, and when they do, it will again be Senate Democrats there to call it out, fight back, and defend American families," Senate Minority Leader Chuck Schumer, D-N.Y., said in a statement.
