White House rescinds Trump's funding freeze memo after huge backlash
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The White House Office of Management and Budget (OMB) rescinded a memo Wednesday that had ordered a "temporary pause" on federal funding and unleashed major confusion across the country.
Why it matters: It's an astonishing reversal by the Trump administration, a day after top officials defended the funding freeze — which a judge temporarily halted on Tuesday — as necessary to ensure all government spending was aligned with the president's vision.
The latest: "This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo," White House press secretary Karoline Leavitt said in a post on X.
- "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," she added.
- It's unclear what exactly Leavitt meant, as it was the now-rescinded memo — not the executive orders Trump signed previously — that outlined the "temporary pause."
Catch up quick: The memo ordering the freeze, issued Monday night, had called for a pause on federal grant, loan and other financial assistance programs — potentially affecting billions or even trillions of dollars in spending.
- White House officials said it would not affect Medicare, Social Security, or other direct assistance that Americans "rely on," but the lack of detail left state governments, nonprofits, schools and other programs scrambling to determine whether they'd be impacted.
- Outages affecting Medicaid reimbursement portals across the country only added to the confusion, and Democrats seized on the chaos to mount their first significant and sustained attacks on the Trump administration.
What they're saying: "This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country — real people made a difference by speaking out," Sen. Patty Murray (D-Wash.), the top Democrat on the Appropriations Committee, said in a statement.
- "Still, the Trump administration — through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law — caused real harm and chaos for millions over the span of the 48 hours which is still ongoing," she added.
- "Round one goes to Team America. We remain in the ring until far right extremism has been completely and totally knocked out," House Minority Leader Hakeem Jeffries (D-N.Y.) tweeted.
The intrigue: Other Democrats argued the memo rescission was simply a sleight of hand, and that the Trump administration is seeking to circumvent lawsuits while keeping certain funding frozen.
- "Crisis is deepening, not abating. They are trying to ignore the court order," Sen. Chris Murphy (D-Conn.) warned.
- "This is just more confusion and chaos," tweeted New York Attorney General Letitia James, who is leading a group of states suing the administration. "We will be in court this afternoon."
This story is developing. Please check back for updates.
