White House Reverses Course, Rescinds Freeze On Federal Grants

The White House Office of Management and Budget (OMB) rescinded an order freezing federal grants, according to a Wednesday memo.

"OMB Memorandum M-25-13 is rescinded," reads the note, which sheds no additional light on why.

On Monday, the White House OMB issued a pause on all federal spending - including grants and leases, pending a thorough review to ensure that programs align with the Trump administration's priorities.

A memo from OMB Acting Director Matthew Vaeth directed federal agencies to conduct a comprehensive analysis of all financial assistance programs to determine whether they are aligned with the executive orders signed by President Donald Trump after his inauguration on Jan. 20.

“In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” it stated.

Vaeth stated in his memo that the pause will allow the government more time to review agency programs and determine the best uses of funding for those programs consistent with the law and Trump’s priorities.

The suspension was set to take effect at 5 p.m. on Jan. 28...

That order hit a snag Tuesday night, after a Biden-appointed judge blocked the pause.

US District Judge Loren L. KliKhan, who was appointed by former President Joe Biden in 2022, issued an administrative stay that lasts until Monday afternoon, and only applies to existing programs, AP reports.

Administration officials said the decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofit organizations around the country — was necessary to ensure that spending complies with Trump’s recent blitz of executive orders. The Republican president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion efforts. -AP

According to AliKhan, "It seems like the federal government currently doesn’t actually know the full extent of the programs that are going to be subject to the pause."

And now, it looks like the Trump administration doesn't want a legal dog-and-pony show to upstage the agenda.