White House rescission of federal aid freeze memo sparks confusion and court scrutiny

Published January 29, 2025 5:22pm ET



The Trump administration‘s Office of Management and Budget rescinded its memo to freeze federal aid spending, though it could be blocked in court for a second time after contradictory statements from the White House insisted the freeze is still in effect.

The OMB issued a two-sentence notice on Wednesday rescinding the memo that was announced just one day prior that ordered the halting of nearly all federal grants, loans, and other financial assistance to beneficiaries. A federal judge temporarily halted the freeze Tuesday before it was to take effect.

The memo was rescinded by the Trump White House to “end the confusion” and “end the injunction,” a source familiar told the Washington Examiner. However, the source said that reviews are ongoing and that money will be halted if it’s found to run contrary to Trump’s priorities.

But a statement posted to X by White House press secretary Karoline Leavitt suggested the freeze itself could still be in place, even if the memo was walked back.

“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,” Leavitt wrote. “The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”

That statement led to further confusion about what the rescission of the memo did and did not do, and a group of states who were suing over the policy cited it to argue that their lawsuit should continue during a hearing later on Wednesday.

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