Donald Trump’s White House rescinds controversial memo ordering freeze of federal funds
BY Jon Powell / 1.29.2025
Following backlash from Democratic leaders and advocacy groups, Donald Trump’s administration announced that a memo detailing a blanket freeze of federal funding was rescinded. “If you have any questions about implementing the president’s executive orders, please contact your agency’s general counsel,” read a brief document from the Office of Management and Budget (OMB) on Wednesday (Jan. 29).
White House press secretary Karoline Leavitt shared additional details and made mention of a federal judge’s ruling that temporarily blocked Trump’s decision. She also clarified that, while the memo was pulled back, the actual freeze order remained active and ongoing.
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” she explained in a statement shared by CBS News. “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. This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending.” Leavitt later reiterated the administration’s stance in a post on X.
As REVOLT previously reported, the government sparked widespread confusion and concern with a late Monday (Jan. 27) directive temporarily pausing federal grant, loan, and financial assistance programs. All affected aid was tied to Trump’s executive orders regarding issues like immigration and diversity, equity, and inclusion.
Several entities reported aid accessibility problems well before the Tuesday (Jan. 28) afternoon deadline, including Medicaid and Head Start. The White House later clarified the problem was an “outage” and assured no payments were affected. The move also triggered lawsuits from nonprofits and Democratic state attorneys general, which prompted U.S. District Judge Loren AliKhan to temporarily halt the freeze pending further review.