UPDATE: White House Press Secretary Karoline Leavitt said that the federal aid freeze remains in effect despite the fact that the memo was rescinded.
“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. 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,” Leavitt wrote on X.
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The White House has officially rescinded a federal aid freeze that had caused confusion and concern among lawmakers and state officials. The Office of Management and Budget (OMB) announced the decision through a memo, which was obtained by CNN. The memo stated, “OMB Memorandum M-25-13 is rescinded,” and advised federal agencies to contact their General Counsel for guidance on implementing the President’s Executive Orders.
The freeze, initially ordered by the White House budget office, had paused federal grants and loans, leading to widespread uncertainty. Despite White House aides blaming the media for the confusion, the administration received numerous inquiries from lawmakers and state officials about the potential impact on their regions.
The original memorandum, issued by Acting Director Matthew Vaeth, instructed federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” citing priorities from past executive orders. However, a federal judge temporarily blocked part of the aid freeze on Tuesday (January 28).
The decision to lift the freeze comes amid ongoing discussions about the administration’s priorities and the need for clarity in federal financial assistance.
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