Trump White House rescinds memo freezing federal money

The Trump administration rescinded a memo that froze federal loans and grants just two days after issuing it, following widespread confusion and legal challenges. The Office of Management and Budget had paused spending to review whether it aligned with Trump’s executive orders on issues like climate change and diversity programs. However, the freeze alarmed states, schools, and organizations reliant on federal funding, prompting lawsuits and a temporary block from a federal judge.

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The White House insisted the move successfully emphasized compliance with Trump’s policies but faced criticism for causing unnecessary chaos. Republicans defended the strategy, while Democrats argued the administration overreached. Although essential programs like Social Security, Medicare, and food stamps were eventually clarified as exempt, the initial uncertainty led to concerns about disruptions to critical services. The reversal underscores the challenges of Trump’s rapid policy shifts and the limits of executive power.

Source: AP News