Trump Administration Rescinds Freeze on Federal Grants and Loans

Source: Chip Somodevilla / Getty

According to NPR, the Office of Management and Budget has reversed its request for an end to federal support, according to a memo obtained by Democracy Forward, which spearheaded a legal challenge to the attempt. However, the White House stated that just the original letter calling for the freeze had been revoked, a revelation that only adds to the confusion as to the long term implications of Trump’s proposed freeze.

RELATED: Dozens Arrested by ICE in a “Targeted Operation” in Texas

The new memo recommends the heads of the executive departments and agencies should contact their general councils for any questions.

“Following legal pressure from our clients and a federal judge’s decision in our lawsuit last evening, the Trump-Vance administration has abandoned OMB’s ordered federal funding freeze,” Democracy Forward stated in a statement. “We are proud of our courageous clients — who represent communities across the nation — for going to court to stop the administration’s unlawful actions.”

White House spokeswoman Karoline Leavitt told reporters that the move simply constituted a retraction of the memo.

She said attempts to “end the egregious waste of federal funding” would continue. She stated that the OMB document has been withdrawn “to end any confusion on federal policy created by the court ruling and the dishonest media coverage.” The administration believes that rescinding the memo will end the court battle against it.

Following widespread misunderstanding caused by the initially broad memo asking for a pause in government assistance while it was reviewed, the White House attempted to further explain which programs would be unaffected on Tuesday, later stating that it would not effect Medicaid or SNAP programs, for example.

Today’s developments come after a federal court issued an order that put on hold efforts to stop federal payments for grants and other programs.

According to the original OMB document retrieved by NPR, a temporary delay in funding was scheduled to begin Tuesday evening, but a senior administration official indicated the pause may last as little as a day if an agency concludes its programs are in compliance.