White House Rescinds Memo Freezing Federal Money

January 30, 2025 5:02 am

WASHINGTON (AP) — President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country. The White House said that Trump’s underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change, remained in place. The original Monday evening memo from the Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington. The White House has been scrambling to explain what would and wouldn’t be subject to a pause in funding.