The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.
“OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel,” a new memo obtained by CNN reads.
White House press secretary Karoline Leavitt said on X that while the earlier memo had been rescinded, the president’s executive orders freezing foreign assistance and ending diversity equity and inclusion initiatives, for example, remain in effect. Those orders are more targeted than the trillions of dollars in aid that was frozen Monday night.
The White House budget office had ordered the pause on federal grants and loans, according to the internal memorandum sent Monday, which
unleashed anxiety even as the White House said it was not as sweeping an order as it appeared.
Though White House aides publicly blamed the media for causing the confusion, arguing that none existed within the building, the administration had received a flood of calls from lawmakers and state officials with questions about its impact on their home states.
A handful of GOP members of Congress had raised concerns to advisers on the president’s team, underscoring how the confusion was far from contrived. Republicans were privately frustrated they were not given a heads up at a decision that stirred a direct deluge of outrage from constituents.
Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget Acting Director Matthew Vaeth said in the original memorandum, a copy of which was obtained by CNN, citing administration priorities listed in past executive orders.
On Tuesday afternoon, a federal judge
temporarily blocked part of the Trump administration’s aid freeze.