By Zeke Miller and Chris Merkel of the Associated Press
Washington (AP) Less than two days after it caused nationwide confusion and legal challenges, President Donald Trump’s budget office revoked an order on Wednesday that froze spending on government grants, according to two people familiar with the situation.
The White House was left scrambling to clarify what would and wouldn’t be subject to a funding pause after the White House Office of Management and Budget issued an order Monday evening that raised questions about a vital financial lifeline for states, schools, and organizations that depend on trillions of dollars from Washington.
In a two-sentence letter sent to agencies and departments on Wednesday, the White House confirmed that OMB had removed the memo. However, it stated that Trump’s underlying executive orders that targeted federal expenditure in areas such as climate change and diversity, equity, and inclusion were still in effect.
According to administration sources, the notification to stop loans and grants was required in order to evaluate spending and make sure it complies with Trump’s recent executive order frenzy. By February 7, agencies were to respond to a set of yes/no questions on every government program. Does this program promote gender ideology? was one of the queries. Furthermore, is abortion in any way supported or encouraged by this program?
Nevertheless, the ambiguously worded message and the White House’s insufficient responses throughout the day left lawmakers, public officials, and regular citizens unable to determine which services would be impacted by the pause. Layoffs or delays in public services could result from even brief financial disruptions.
After charity organizations that get government funding requested an emergency hearing, a federal court postponed the freeze until at least Monday, even though it was set to take effect at 5 p.m. Tuesday. There was also another case pending from Democratic state attorneys general.
White House press secretary Karoline Leavitt blamed the uncertainty on the courts and news outlets rather than the government, saying that the President’s Executive Orders on financial evaluations are still in full force and effect and would be strictly followed by all agencies and departments. The court case should be effectively resolved by this measure, freeing up government resources to concentrate on carrying out the President’s directives to limit federal expenditure.
Programs that directly help Americans, like as food stamps, student loans, Social Security, and Medicare, would not be impacted, according to Trump administration officials. However, they occasionally had trouble painting a whole picture.
The administration subsequently clarified that Medicaid was immune from the freeze, but Leavitt first refused to state this.
The consequences of Trump’s attempt to halt financing were being felt far from the nation’s capital, despite his pledge to completely transform Washington if elected to a second term. Organizations such as Head Start, which offers early childcare in low-income regions, and Meals on Wheels, which receives government funding to provide food to the elderly, were concerned about being shut off.
Democratic opponents of the order quickly praised the move.
Sen. Patty Murray, a Democrat from Washington, stated, “This is a significant victory for the American people whose voices were heard after tremendous pressure from all over this country. Real people made a difference by speaking out.” Still, millions of people have experienced actual injury and disruption over the past 48 hours, which is still going on, as a result of the Trump administration’s mix of blatant incompetence, malicious intent, and intentional disdain for the law.
According to New York Senate Democratic Leader Chuck Schumer, Americans retaliated and Donald Trump withdrew.