White House rescinds memo on aid freeze
WASHINGTON—President Donald Trump’s budget office on Wednesday rescinded a memo freezing spending on federal loans and grants, less than two days after it sparked widespread confusion and legal challenges across the country.
The memo, which was issued Monday by the Office of Management and Budget, had frightened states, schools and organizations that rely on trillions of dollars from Washington.
Administration officials said the pause was necessary to review whether spending aligned with Trump’s executive orders on issues like climate change and diversity, equity and inclusion programs.
But on Wednesday, they sent out a two-sentence notice rescinding the original memo.
The reversal was the latest sign that even with unified control of Washington, Trump’s plans to dramatically and rapidly reshape the government have limits.
Administration officials insisted that despite the confusion, their actions still had the intended effect by underscoring to federal agencies their obligations to abide by Trump’s executive orders.
“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,” White House press secretary Karoline Leavitt said, blaming the confusion on the courts and news outlets, not the administration. “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending.”
Confusion from vague order
The vaguely worded order, legal pause and eventual cancellation left organizations confused and worried again about what might be next.
Nourishing Hope, which runs foods pantries, home meal delivery and an online food market in Chicago, gets roughly 20 percent of its food budget comes from the federal government.
CEO Kellie O’Connell said the biggest issue when the memo surfaced was getting clear and accurate information so they could figure out how to plan for the coming months.
If their federal funds were frozen, O’Connell said, they could make it a few weeks.
