Huge New Development About Trump’s Federal Funding Freeze You Will Want to Hear

President Donald Trump — likely responding to a hailstorm of criticism, outrage and confusion — made the decision Wednesday to reverse an executive order to freeze federal aid that his administration announced Tuesday (Jan. 28).

According to a memo obtained by NPR, the Office of Management and Budget has revoked its call for a pause on federal assistance. The White House confirmed that only the original memo requesting the freeze has been rescinded.

“OMB Memorandum M-25-13 is rescinded,” the Wednesday letter explained to federal employees. “If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”

The White House order freezing federal grants threw Washington into a frenzy, as government programs that fund schools, supply housing and guarantee that low-income Americans have access to health care would’ve been in jeopardy.

There were issues reported by different states having trouble accessing Medicaid funds and public housing authorities being locked out of their funding portal. The decision to rescind comes after a federal judge in Washington, D.C., temporarily stopped its implementation until Feb. 3, allowing public health advocates, businesses and nonprofits — represented by Democracy Forward—extra time to challenge the legality of the order.

Additionally, around two dozen state attorneys general filed lawusits against the administration on Tuesday, claiming that the pause in federal spending has hurt their citizens.

On X, White House spokeswoman Karoline Leavitt stated that the initial budget office memo was suspended but insisted the administration’s wider efforts to block any spending it opposes remain in effect.

“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo,” Leavitt wrote. “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.”

However, the rescinded order shows how the Trump administration will continue to attempt to exert more authority over the federal budget than it should.

Trump and Russell Vought—the nominee to lead the Office of Management and Budget—believe they should be able to cancel federal spending without congressional approval.