The Trump administration’s Office of Management and Budget rescinded its memo to freeze federal aid spending, just one day after issuing it.
The freeze, announced Tuesday, halted nearly all federal grants, loans, and other financial assistance to beneficiaries. A federal judge temporarily halted the freeze Tuesday before it was to take effect.
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House press secretary Karoline Leavitt said. “The executive orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments.”
Leavitt said the action should end court cases against the ruling and allow the government to focus on enforcing Trump’s executive orders.
While the Trump administration insisted it would not impact aid to individuals or programs such as Social Security and Medicare, it nonetheless set off panic throughout Washington and beyond.
Matthew Vaeth, acting director of the White House Office of Management and Budget, issued a two-sentence rescission of the aid freeze on Wednesday, saying it is gone and directing questions to the general counsel for various federal agencies, according to reports.
The order was rescinded by the Trump White House to “end the confusion” and “end the injunction,” a source familiar told the Washington Examiner. However, the source said that reviews are still ongoing and money will still be halted if it’s found to run contrary to Trump’s priorities.
“This policy is a callous disregard for the rule of law and a drastic abuse of power that will harm millions of Americans across the country,” said Skye Perryman, president of Democracy Forward, which represented plaintiffs in a lawsuit challenging the order.
Democrats have elected to go forward with an emergency meeting this afternoon to discuss the order, warning that the saga is not over.
“We heard Trump rescinded his horrible OMB freeze, he should now rescind Russell Vought’s nomination for [the office of management and budget],” Senate Minority Leader Chuck Schumer (D-NY) said. “We believe they’ll come back and try to do this in other ways. Vought sat in my office and said he was going to do it. The next step to make sure this doesn’t happen is rescind votes nomination for OMB director.”
Schumer said on X that it’s “no secret” that Trump will try the tactic again, “and when they do, it will again be Senate Democrats there to call it out, fight back, and defend American families.”
Firebrand Rep. Alexandria Ocasio-Cortez (D-NY) posted on X, “FAFO,” an acronym for “f*** around and find out.”
Before it was halted, Vaeth defended the freeze by saying that federal money would be put on hold to ensure alignment with Trump’s executive orders, including those targeting diversity, equity, and inclusion programs.
Leavitt also defended the move on Tuesday, pushing back against claims that the order came on short notice.
“There was notice. It was the executive order the president signed,” she said. “This administration is taking into consideration how hard Americans work and give their tax dollars. DOGE and OMB found $37M that was about to go to the World Health Organization. They also found $50M about to go to fund condoms in Gaza. That is a preposterous waste of money,” Leavitt told reporters.”
Rachel Schilke and Samantha-Jo Roth contributed to this report.
