WH Rescinds OMB Memo, Fed Funding Freeze Stays
The federal funding freeze imposed by the White House Tuesday is alive and well. The only difference now is that the memo was rescinded. That is according to CNBC , who reported the freeze remains in “full force and…
The Federal Funding Freeze imposed by the White House Tuesday is alive and well.
The only difference now is that the memo was rescinded.
That is according to CNBC, who reported the freeze remains in “full force and effect.”
The confusion that followed the announcement led White House spokesperson Karoline Leavitt to clarify what actually happened.
“This is NOT a rescission of the Federal Funding Freeze,” Leavitt wrote in a post on X.
“It is simply a recission of the memo,” Leavitt added.
The purpose of rescinding the OMB memo was to “end any confusion created by” an injunction by a federal judge, which blocked the memo from taking effect until Monday in order to give that judge time to consider those arguments being made by nonprofit groups challenging the freeze’s legality.
“The President’s on federal funding remain in full force and effect, and will be rigorously implemented,” Leavitt wrote.
In its original memo, the OMB said the freeze was designed to make sure funds disbursed by federal agencies were in align with President Donald Trump’s executive orders.
These orders are to eliminate “Marxist equity, transgenderism, and green new deal social engineering policies.”
The freeze and accompanying memo confused those wanting to understand just what was happening.
Medicaid reimbursement portals went offline in all 50 states Tuesday.
New York Attorney General Letitia James replied to Leavitt’s statement on X.
“This is just more confusion and chaos,” she wrote.
“We will be in court this afternoon,” James added.
New York is one of 22 states, along with the District of Columbia, that sued the Trump administration over freezing federal funds on Tuesday.
Acting OMB Director Matthew Vaeth, issued a new memo Wednesday.
“OMB Memorandum M-25-13 is rescinded. If you have any questions about implementing the President’s Executive Orders, please contact your agency General Counsel,” he wrote.