President Donald Trump on Wednesday rescinded an order that put a freeze on federal grants and loans after confusion spread throughout the nation.
The move follows a federal judge’s order for a temporary stay on Trump’s executive order directing the Office of Management and Budget to pause federal grants and loans. The OMB order was met with immediate backlash and legal challenges from nonprofits, public health organizations and small business advocacy groups, leading to an emergency ruling from the U.S. District Court for the District of Columbia.
The two-page memo at the center of the confusion states that 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.”
The White House defended the freeze and stated it does not qualify under the Impoundment Control Act of 1974, which limits presidents’ authority when withholding or delaying congressionally approved funds, and noted that the pause is a temporary measure to ensure taxpayer dollars align with presidential priorities, as previously reported by The Center Square.
This is a developing report that will be update.
