Donald Trump’s administration has rescinded its calamitous freeze on federal grants and loans.
In a brief memo Wednesday, the Office for Management and Budget announced that it would be withdrawing its order to pause funding for review.
“OMB Memorandum M-25-13 is rescinded. If you have any questions about implementing the President’s Executive Orders please contact your agency General Counsel,” the memo stated.
The freeze was originally intended to go into effect at 5:00 p.m. on Tuesday. But all day, state officials and lawmakers reported having issues accessing essential government services such as Medicaid and Head Start, despite subsequent assurances from OMB that these programs would not be affected by the freeze. These issues, and widespread confusion led to a public outcry, as many feared that their health care access was in jeopardy.
Democratic leaders called it a “constitutional crisis,” as Trump’s administration was clearly preventing funds from being allocated as Congress had decided. To re-secure funding, these organizations would have had to report to OMB on whether they promote ideas such as environmental justice, “gender ideology,” diversity, equity, and inclusion. They would also have to say whether they provide services to undocumented immigrants.
Tuesday night, a district judge ordered a brief administrative stay on the freeze, which would have delayed it from going into effect until February 3.
Senator Patty Murray, a Democrat from Washington, said Wednesday that the rescission was “an important victory for the American people whose voices were heard after massive pressure from every corner of this country—real people made a difference by speaking out.”
The freeze, as short-lived as it was, “caused real harm and chaos for millions,” Murray said.
This first major fiasco by the Trump administration promises only more chaos to come.
This story has been updated.
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