The White House has rescinded a memo ordering a freeze on hundreds of billions of dollars in federal grants and loans, following a court injunction that temporarily blocked the directive.
A judge issued the temporary halt on Tuesday, just hours after former President Donald Trump signed the order, in response to a lawsuit filed by organizations representing grant recipients. The injunction will remain in place until next Monday, pending further legal proceedings.
In a statement on Wednesday, White House Press Secretary Karoline Leavitt clarified that the administration remains committed to the funding freeze despite withdrawing the Office of Management and Budget (OMB) Memorandum M-25-13.
“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo, to end any confusion created by the court’s injunction,” Leavitt stated.
The initial directive, issued earlier this week by the acting head of the White House budget office, instructed federal agencies to temporarily suspend all obligations and disbursements related to financial assistance. The administration justified the move as a necessary review to align federal spending with its policy agenda.
The decision sparked confusion and backlash, with critics raising concerns about the potential impact on essential services and programs. In response, Senate Minority Leader Chuck Schumer shifted a scheduled press conference on Trump’s efforts to end birthright citizenship to instead address the funding freeze.
“What they’re doing is lawless—hurting families while helping their billionaire friends,” Schumer said, attributing the temporary pause of the freeze to nationwide public outcry.
He further urged Trump to withdraw his nominee for the OMB leadership and warned that Republicans would continue attempting to block future federal funding.
The order is part of a series of executive actions taken by Trump since returning to office, with other directives targeting transgender rights and automatic citizenship for individuals born in the U.S.
With the court’s injunction in place, the legal battle over the funding freeze is expected to continue in the coming days.
