Trump administration rescinds memo to halt federal funding

The Trump administration on Wednesday rescinded a sweeping directive to freeze all federal grants and aid after the move was temporarily blocked by a federal judge.

The funding freeze, which came into action on Tuesday, is believed to have disrupted tens of billions of dollars in spending across healthcare, education, disaster relief, housing assistance and other programs.

A memo sent by the Office of Management and Budget (OMB) to government agencies included a series of yes or no questions including “does this program promote gender ideology?” and “does this program promote or support in any way abortion?”

The move set off a wave of confusion and panic, and raised the possibility of a constitutional crisis.

On Wednesday, White House press secretary Karoline Leavitt said the OMB memo had been rescinded.

However, she claimed the funding freeze remained in force.

“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo,” she said on social media.

Funding freeze faces legal challenges

The rescission of the memo came shortly before a federal judge in Rhode Island was set to consider a request by 22 mostly Democratic-led states and the District of Columbia for a temporary restraining order.

They argued that the policy was announced with little notice and could have devastating effects on their budgets.

Meanwhile, a federal judge in Washington D.C. paused the measure until Monday in response to a lawsuit filed by a coalition of non-profit groups.

Trump says federal employees must return to work

Meanwhile, US President Donald Trump said any federal employees who fail to return to work next week will be fired.

The announcement comes as he attempts to purge to federal workforce of staff who are unsupportive of his agenda.

“If they don’t agree by February 6 to show up back to work in their office, they will be terminated, and we will therefore be downscaling our government,” Trump said on Wednesday.

zc/jcg (AP, Reuters, AFP)

Trump administration rescinds memo to halt federal funding – DW – 01/29/2025