The Trump administration‘s Office of Management and Budget rescinded its memo to freeze federal aid spending, though it could be blocked in court for a second time after contradictory statements from the White House suggested the freeze could still be in effect.
The directive from the Office of Management and Budget that froze most federal funds on Monday had not gone through the usual approval process.
The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.
The White House memo issued late Monday led to chaos and confusion as to what programs would be impacted by the freeze.
The White House budget office rescinded a memo ordering a broad freeze on federal grants and loans after Republican senators “hit the ceiling” over the order, which caught them completely by
Two-sentence memo ends days-long threats that sent officials, agencies and nonprofits into tailspin over ‘unconstitutional’ threats
The White House’s Office of Management and Budget sent this document to government agencies listing about 2,600 programs that were under review.
The Office of Management and Budget instructed federal agencies to pause any financial aid programs that might conflict with President Donald Trump's executive orders.
Officials said the decision to halt loans and grants was necessary to ensure spending complies with recent executive orders.
The full extent of the order was not immediately clear, but the directive sent to government agencies on Monday threatened to paralyze a vast swath of federal programs.
The Trump administration withdrew the budget office memo less than a day after a federal judge paused it from going into effect.
President Donald Trump is relying on a relatively obscure federal agency to reshape government. The Office of Personnel Management was created in 1979 by President Jimmy Carter and is the equivalent of the government's human resources departent.