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Trump Administration Rescinds Memo Freezing Financial Assistance Grants

17 11
30.01.2025

The Donald Trump administration on Wednesday rescinded a a controversial memo pausing all federal grants that caused confusion and chaos across the government in a stunning reversal for the new president.

HuffPost obtained the brief new memo cancelling the previous one without explanation: “OMB Memorandum M-25-13 is rescinded.”

The original order pausing federal financial assistance caused a political uproar and consternation among recipients of federal grants, and it had seemingly set the stage for a constitutional showdown.

Instead, one of Donald Trump’s first big moves as president appears to have resulted in an epic climbdown.

Just hours earlier on Wednesday, White House press secretary Karoline Leavitt defended the spending freeze, claiming it had been wilfully misunderstood.

“There’s no confusion within this building. I know there is again a lot amongst the media, and those who don’t seem to just be able to read a memo and take it for what it is,” Leavitt told reporters. “The American people should not be confused about this.”

A federal judge on Tuesday

© HuffPost