Trump Administration Rescinds Grant Freeze Memo—Here’s Everything We Know

Trump’s management revoked a debatable directive on Wednesday that ordered a freezing in federal aid programs, after generalized confusion and a partial rupture ordered through the Balayage Tribilier Court.

Trump’s management on Wednesday released a memo of a ruling that told agencies that the directive had been revoked, in several reports, White House press secretary Karoline Leavitt canceled to “end all confusion. “

The temporary moratorium—detailed in a surprise Office of Management and Budget memo first obtained by independent journalist Marisa Kabas on Monday—ordered a pause in all federal assistance “including, but not limited to” grants related to diversity, foreign aid and “woke gender ideology.”

The memo did not specify which subsidies would and would not be reduced, and several reports reported that it may end up disrupting nearly all federal grant programs, on break with a massive government budget: The White House said Tuesday that the break will only be the canopy expenses that may hold back Trump’s recent executive decorations on issues such as diversity and energy.

A few minutes before the break that will enter into force at five p. m.

The rupture not implemented in Social Security and Fitness Insurance invoices or “financial aid provided directly to people” and the OMB can grant other exceptions on a case -by -case basis. “

Agencies were told to examine which programs conflict with Trump’s executive orders to halt government spending that falls under “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” according to the memo.

All federal agencies have also been guilty of appointing “a guy called Policy Awesome” to monitor expenditures “to that federal monetary assistance that meets the administration’s priorities. “

$3 trillion. That’s how much the federal government spent the aid in fiscal year 2024, the memo reportedly said, though it’s unclear where the figure came from here.

A federal judge in Rhode Island granted a request on Wednesday from a group of state attorneys generals seeking a restraining order barring the directive from taking effect. A day earlier, a federal judge in Washington, D.C. granted a temporary injunction while legal challenges wind their way through court. The first injunction was issued in response to a lawsuit filed by four advocacy groups—the National Council of Nonprofits, the American Public Health Association, the Main Street Alliance for small businesses and the LGBTQ advocacy nonprofit SAGE—against the OMB and Acting Director Matthew Vaeth. That lawsuit argues the OMB memo violates provisions of the Administrative Procedure Act prohibiting actions that are “arbitrary and capricious” and “in excess of statutory authority.” It also accuses the administration of violating the First Amendment by targeting “recipients of federal funding” who have expressed “viewpoints disfavored by the administration.”

The scope of the pause is unclear as the language of the order can be broadly interpreted as applying a wide diversity of investment systems across education, medical research, infrastructure systems, small business loans, housing, and more. dispensed were also a subject to be stopped, per the rules of the Associated House of Representatives. White, released later Tuesday, which sought to explain that it has a particular pause implemented in Trump’s executive orders on immigration, foreign aid, power and the environment, abortion and transgender issues: a much narrower set of subsidies. Patty Murray, D-Wash. , the most level-headed Democrat on the Senate Appropriations Committee, indexed dozens of systems that may be affected in a memo from Senate Democrats received through Puck News, adding grants to save violence opposed to women and victims, federally, federally. Funded transit projects and grants to assist firefighters, law enforcement, and state and state veterans.

Federal Pell grants and direct loans are affected, OMB told reporters, who present the provision in the order that monetary assistance to “individuals” is exempt. The company is still calling for a review of the systems in accordance with Trump’s other executive orders, however, USA Today reporter Zach Schermele wrote in X, presenting instructions from OMB.

Leavitt said that “Social Security, Medicare, food coupons, well -being” and “assistance that goes directly to Americans will not be affected. ” The rules said that small businesses, the Head Start Childcare program, rental assistance and the “other programs” would remain in force. Chris Murphy, D-Conn. , Said that in X, he did not believe that the White House claims that the startup would not be affected, saying that the program had been beaten in Connecticut.

The White House said in its publicly released steerage later Tuesday that Medicaid would “continue without pause. “However, Medicaid portals dropped in all 50 states on Tuesday. While Leavitt insisted that no bills had been earmarked and said the portal would be “back online shortly,” Democratic senators attributed it to the investment freeze. Sen. Ron Wyden, D-Ore. , called the resolution “a blatant attempt to rip up the fitness insurance of millions of Americans overnight” that will “get other folks killed. “The White House did not why the gate was broken.

Last week, Trump ordered a separate 90-day freeze on “Foreign Progression Assistance” pending a foreign policy review. A second, more drastic order issued later in the week via the State Department also halts foreign aid subsidies for 90 days, according to multiple reports. Military assistance for Israel and Egypt and emergency food aid is exempt from the freeze, the Wall Street Journal reported. The U. S. Agency for International Development has put dozens of officials suspected of “designed to circumvent the president’s executive orders,” according to the license, according to the license. to several reports. The directive appears to apply to arms aid to Taiwan and Ukraine and calls for shutdown paint orders for nongovernmental organizations and aid teams to prohibit them from spending U. S. aid that has already been distributed, the Journal reported.

Legal actions against the order are likely to argue Trump can’t pause funding that’s already been approved by Congress. The Impoundment Control Act of 1974 requires presidents to submit requests to Congress to halt federal funding that has already been appropriated but not yet spent, though Trump has argued for years the law is unconstitutional, a stance echoed by his OMB Director nominee Russell Vought during his Senate confirmation hearing. Some legal experts suggested Monday Trump’s order violated the law, even if it’s only temporary and the paused funding ends up being distributed. If legal challenges arise and are elevated to the Supreme Court, it could issue a ruling within weeks. The Supreme Court ruled against former President Richard Nixon’s use of impoundment to withhold water treatment funding for New York City, but the court paused the Impoundment Control Act while the case was playing out. Despite the high court being controlled 6-3 by conservatives, Georgetown University law professor Stephen Vladeck predicted the justices could determine Trump’s directives could usurp congressional authority. The Trump administration said in its Tuesday guidance the pauses were “not an impoundment under the Impoundment Control Act.”

The note has created an alarm and generalized confusion between the Democrats and the federal monetary aid entities. Senator Chuck Schumer, d-n. y. , I doubt a doubt about the legality of the order, writing in X that “Congress has approved these investments and are not optional, they are the law. ” Senator Amy Klobuchar, D-Min. Murray and the representative of Pink Delauro, D-Conn. , Predicted “large-scale consequences” in a letter to Vaeth.

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