A memo that blocked federal grants and loans was revoked by US President Donald Trump’s administration on Wednesday, January 29, causing confusion this week.
The Office of Management and Budget ordered the revocation, which was confirmed by a senior administration official, according to NBC News.
The federal district court temporarily suspended the original order Tuesday evening, which caused confusion and turmoil around Washington.
Soon after it was made public on Wednesday, Democrats who opposed the White House order rejoiced over the memo’s revocation.
“Americans fought back and Donald Trump backed off,” Senate Minority Leader Chuck Schumer, D-N.Y., said in a statement. “Though the Trump Administration failed in this tactic, it’s no secret that they will try to find another, and when they do, it will again be Senate Democrats there to call it out, fight back, and defend American families.”
On Monday evening, OMB issued its first directive, instructing government entities to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
The administration would be able to examine which initiatives were “consistent” with Trump’s agenda during the halt, according to the memo.
Although direct payments to individuals, Social Security, and Medicare were not intended to be impacted, it was unclear which help would be stopped due to the memo’s ambiguous wording.
On Wednesday, White House Press Secretary Karoline Leavitt stated that the memo’s withdrawal was an effort to “end any confusion.”
“This is NOT a rescission of the federal funding freeze,” she wrote on X. “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.