The Trump administration abruptly switched course and unfroze federal grants Wednesday, just days after facing intense backlash for halting roughly $3 trillion in spending.
In a memo issued by Matthew J. Vaeth, acting director of the White House Office of Management and Budget (OMB), the order that had temporarily halted the disbursement of federal financial assistance was rescinded.
🚨 Trump’s White House OMB rescinds federal aid freeze. pic.twitter.com/u6lyLSQQhu
— Peter Alexander (@PeterAlexander) January 29, 2025
"OMB memorandum M-25-13 is rescinded," said Vaeth in the document, posted by NBC News' Peter Alexander.
The initial directive, issued Monday, instructed federal agencies to "temporarily pause all activities related to obligations or disbursement of all federal financial assistance."
The order, which sparked chaos and confusion across Washington, was temporarily halted by a federal district judge Tuesday night. While Social Security, Medicare, and direct payments to individuals were not supposed to be affected, the memo's vague wording left agencies unclear on which aid programs would be halted, according to NBC News.
Democracy Forward, a progressive nonprofit group, filed a lawsuit against OMB, leading to U.S. District Judge Loren AliKhan issuing a temporary restraining order that blocked the federal aid freeze from going into effect as reported by the Wall Street Journal.
"While we hope this will enable millions of people in communities across the country to breathe a sigh of relief, we condemn the Trump-Vance administration's harmful and callous approach of unleashing chaos and harm on the American people," Skye Perryman, the CEO of Democracy Forward, wrote in a statement Wednesday. "Our team will continue to bring swift legal actions to protect the American people and will use the legal process to ensure that federal funding is restored."
On Tuesday, the Trump administration defended the freeze as a temporary measure designed to tighten oversight of government spending.
"It is a temporary pause," said White House Press Secretary Karoline Leavitt during a briefing."And the Office of Management and Budget is reviewing the federal funding that has been going out the door, again, not for individual assistance, but for all of these other programs that I mentioned."
Leavitt explained that the pause would allow OMB to reassess current allocations and align them with President Trump's priorities.
The decision came amid criticisms of the Biden administration's spending habits. "Think this is a very responsible measure. Again, the past four years, we've seen the Biden administration spend money like drunken sailors. It's a big reason we've had an inflation crisis in this country, and it's incumbent upon this administration to make sure again that every penny is being accounted for, honestly," Leavitt said.
Senator Patty Murray (D-WA) took to X Wednesday to criticize the Trump administration's handling of the freeze.
This is an important victory for everyone who made their voices heard. Undoubtedly, the Trump admin caused serious chaos & real harm through a combination of sheer incompetence, cruel intentions, and disregard for the law.
— Senator Patty Murray (@PattyMurray) January 29, 2025
But real people made a difference by speaking out. https://t.co/B4x1vfWCPC
"This is an important victory for everyone who made their voices heard. Undoubtedly, the Trump admin caused serious chaos & real harm through a combination of sheer incompetence, cruel intentions, and disregard for the law. But real people made a difference by speaking out."
She followed up with another post, warning that the fight is "far from over."
This fight is far from over; the Trump admin is still illegally withholding funding across government. Republicans are still intent on confirming Russ Vought as this country’s budget director—someone who has REFUSED to say he will follow the law. Don't let up. https://t.co/3MO3gsj5bn
— Senator Patty Murray (@PattyMurray) January 29, 2025
"This fight is far from over; the Trump admin is still illegally withholding funding across government. Republicans are still intent on confirming Russ Vought as this country's budget director—someone who has REFUSED to say he will follow the law. Don't let up."
The White House has not publicly explained its reversal.
Originally published on Lawyer Herald
