Trump administration withdraws freeze on federal grants

People protest an attempted freeze on federal funding by US President Donald Trump near the White House on January 28, 2025.

The White House rescinded an order freezing all federal grants and loans on Wednesday. Acting director Matthew J. Vaeth for the Office of Management and Budget, which issued the freeze order, told federal agencies that the memo suspending the funds had been “rescinded”, The New York Times reported.

President Donald Trump's budget office on Wednesday rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

The Monday evening memo from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organisations that rely on trillions of dollars from Washington and left the White House scrambling to explain what would and wouldn't be subject to a pause in funding.

The reversal was the latest sign that even with unified control of Washington, Trump's plans to dramatically and rapidly reshape the government has some limits.

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Still, the vaguely worded memo, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.

(AP)


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