White House Denies Reports of Federal Funding Freeze Rescission
The White House has refuted multiple media reports suggesting that it had reversed its decision to halt federal grants and loans, asserting that the order remains in effect. The Office of Management and Budget (OMB) had reportedly circulated a memo among federal agencies and departments, leading to speculation about a policy reversal.
However, White House Press Secretary Karoline Leavitt took to social media to clarify that only an OMB memo on the matter was rescinded, not the funding freeze itself. “This is NOT a rescission of the federal funding freeze,” she wrote. “It is simply a rescission of the OMB memo… The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
The confusion may have stemmed from a statement by Democracy Forward, an NGO challenging the freeze, which interpreted a new OMB memo as a policy reversal. The memo instructs agency heads to consult their general counsels regarding implementation of presidential executive orders.
Democracy Forward subsequently claimed victory, stating that “the Trump-Vance administration has abandoned OMB’s ordered federal funding freeze” due to legal pressure and a court ruling in its favor. Multiple media reports echoed this narrative, citing anonymous sources.
The original order, issued Monday, temporarily paused all activities related to federal financial assistance obligations or disbursements. This move sparked chaos and concern over the fate of various programs, including school funding and housing for low-income families.
The decision faced immediate legal challenges from several groups, leading a federal judge to issue a temporary block on Tuesday. Despite these developments, the White House maintains that the freeze remains in place.