White House reverses spending freeze memo

By Robin Bravender, Pamela King | 01/29/2025 01:57 PM EST

The backtrack comes after President Donald Trump’s funding pause prompted an outcry and was blocked by a federal judge.

President Donald Trump speaks to reporters.

President Donald Trump faced a barrage of questions and criticisms about the wide-ranging impacts of the funding pause. Mark Schiefelbein/AP

The Trump administration on Wednesday abruptly rescinded a memo freezing federal funding, two days after ordering the pause that caused widespread uncertainty and prompted a broad backlash.

In a two-sentence memorandum issued Wednesday to the heads of federal agencies, the White House Office of Management and Budget rescinded its memo directing a funding pause, POLITICO reported.

The reversal follows widespread confusion about the memo issued Monday ordering a temporary pause on federal grants, loans and other financial assistance programs. The Trump administration faced a barrage of questions and criticisms about the wide-ranging impacts of the pause.

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White House press secretary Karoline Leavitt said on social media, “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. 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.”

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