Trump Administration Rescinds Memo Freezing Federal Spending

2025-01-29 22:07:45.091

President Trump's budget office rescinded a memo that had frozen spending on federal loans and grants. The memo, issued Monday, caused widespread confusion and legal challenges. Administration officials said the pause was to review spending alignment with Trump's executive orders on climate change and diversity, equity, and inclusion programs. The reversal highlights the limits of Trump's plans to reshape the government, even with unified control of Washington. While the administration claimed the action underscored agencies' obligations to abide by Trump's executive orders, the move caught Congress off guard, particularly Republican allies. The initial memo generated significant political heat, with concerns raised by both red and blue states. A federal judge temporarily blocked the freeze following lawsuits from nonprofit groups and Democratic state attorneys general. The memo's questions included whether programs promoted gender ideology or supported abortion. Even temporary interruptions caused worry for organizations like Meals on Wheels. While the administration stated that programs providing direct assistance to Americans would not be affected, they struggled to clarify exemptions, initially causing confusion about Medicaid's status. Democrats celebrated the memo's rescinding, highlighting the public outcry and pressure that led to the reversal.