Trump lifts spending freeze on federal assistance
A federal judge imposed a temporary block on the actions of the Trump administration on Tuesday night.
TroibNews 
On Wednesday, the Trump administration reversed a significant freeze on federal assistance, which had created turmoil in Washington and left many programs uncertain about their funding status, as reported by PMG through a memo they obtained.
A federal judge had already issued a temporary block on the administration’s decision by Tuesday afternoon, following widespread confusion. The freeze led to chaos across the nation, as various states, agencies, and organizations reliant on federal funds scrambled to assess the implications for billions in assistance for programs, including those providing school meals and support for homeless veterans.
The rescission of the memo does not preclude the possibility of a new directive from the White House budget office regarding another spending freeze, as administration officials maintain that such actions fall within the executive branch's authority.
The brief Wednesday memo contained only two sentences and did not elaborate on the reasons behind the quick rescission of the original directive, simply indicating that any implementation questions related to the president's executive orders should be directed to the respective agencies’ general counsels.
White House Press Secretary Karoline Leavitt stated that the budget office withdrew the memo “to end any confusion on federal policy created by the court ruling and the dishonest media coverage.” She added that the president’s more narrowly tailored executive orders “remain in full force and effect and will be rigorously implemented by all agencies and departments.”
Leavitt further remarked, “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
Senate Appropriations Chair Susan Collins praised the administration's decision. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation,” she noted in a statement.
In contrast, Democrats, some of whom earlier claimed Trump's actions had precipitated a “constitutional crisis,” expressed their discontent more strongly. “Despite all the rhetoric about how this time was gonna be smoother and people were going to know what they’re doing, when you have Donald Trump and Stephen Miller in the White House, chaos is gonna happen,” remarked Sen. Martin Heinrich.
Sen. John Hickenlooper emphasized the “serious” confusion caused by the funding freeze. “When you create awe you often create confusion. People are stunned by how fast things are happening and the magnitude of change,” he said. “For people living closer to the edge having a hard time making their rent, confusion is not their friend. Who knows what he’ll try next?”
To mitigate the confusion and backlash following the initial memo, the White House’s budget office issued a follow-up memo on Tuesday clarifying that benefits to individuals, such as the Supplemental Nutrition Assistance Program (formerly food stamps) and student loans, would remain unaffected by the freeze. The memo clarified that agencies were only required to pause funding for activities that would violate several of the president's executive orders, including those aimed at reducing foreign aid, ending diversity, equity, and inclusion efforts, as well as halting environmental spending authorized by Congress during the Biden administration.
The follow-up memo stated that Medicare, Medicaid, and Social Security payments would not be disrupted; however, Medicaid systems experienced a payment outage on Tuesday that contributed to the prevailing confusion.
White House officials did not clarify the fate of social safety net programs, which indirectly aid individuals or are funded through the states, including many that address housing assistance and drug treatment.
Russell Vought, Trump’s nominee for the Office of Management and Budget (OMB), who is awaiting confirmation from the Senate, has long contended that the executive branch possesses the authority to ensure spending aligns with the president's priorities, irrespective of Congressional decisions. The funding freeze seemed aimed at preparing for a legal battle over the separation of powers, reinforcing Vought’s argument that a federal law barring the executive branch from withholding funds appropriated by Congress is unconstitutional.
During her first press briefing on Tuesday, Leavitt defended the broad funding freeze, and the budget office’s follow-up memo similarly justified the freeze amidst allegations of violations of federal law. “The reason for this is to ensure that every penny going out the door is not conflicting with the executive orders and action that this president has taken,” Leavitt stated. “This is a very responsible measure.”
The White House appeared caught off guard by the initial memo and lacked immediate answers regarding the affected programs early Tuesday. The budget office circulated a 52-page document listing thousands of potentially impacted programs, instructing agencies to address over a dozen questions by the end of the following week.
Josh Siegel and Katherine Tully-McManus contributed to this report.
Debra A Smith contributed to this report for TROIB News
A federal judge had already issued a temporary block on the administration’s decision by Tuesday afternoon, following widespread confusion. The freeze led to chaos across the nation, as various states, agencies, and organizations reliant on federal funds scrambled to assess the implications for billions in assistance for programs, including those providing school meals and support for homeless veterans.
The rescission of the memo does not preclude the possibility of a new directive from the White House budget office regarding another spending freeze, as administration officials maintain that such actions fall within the executive branch's authority.
The brief Wednesday memo contained only two sentences and did not elaborate on the reasons behind the quick rescission of the original directive, simply indicating that any implementation questions related to the president's executive orders should be directed to the respective agencies’ general counsels.
White House Press Secretary Karoline Leavitt stated that the budget office withdrew the memo “to end any confusion on federal policy created by the court ruling and the dishonest media coverage.” She added that the president’s more narrowly tailored executive orders “remain in full force and effect and will be rigorously implemented by all agencies and departments.”
Leavitt further remarked, “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
Senate Appropriations Chair Susan Collins praised the administration's decision. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation,” she noted in a statement.
In contrast, Democrats, some of whom earlier claimed Trump's actions had precipitated a “constitutional crisis,” expressed their discontent more strongly. “Despite all the rhetoric about how this time was gonna be smoother and people were going to know what they’re doing, when you have Donald Trump and Stephen Miller in the White House, chaos is gonna happen,” remarked Sen. Martin Heinrich.
Sen. John Hickenlooper emphasized the “serious” confusion caused by the funding freeze. “When you create awe you often create confusion. People are stunned by how fast things are happening and the magnitude of change,” he said. “For people living closer to the edge having a hard time making their rent, confusion is not their friend. Who knows what he’ll try next?”
To mitigate the confusion and backlash following the initial memo, the White House’s budget office issued a follow-up memo on Tuesday clarifying that benefits to individuals, such as the Supplemental Nutrition Assistance Program (formerly food stamps) and student loans, would remain unaffected by the freeze. The memo clarified that agencies were only required to pause funding for activities that would violate several of the president's executive orders, including those aimed at reducing foreign aid, ending diversity, equity, and inclusion efforts, as well as halting environmental spending authorized by Congress during the Biden administration.
The follow-up memo stated that Medicare, Medicaid, and Social Security payments would not be disrupted; however, Medicaid systems experienced a payment outage on Tuesday that contributed to the prevailing confusion.
White House officials did not clarify the fate of social safety net programs, which indirectly aid individuals or are funded through the states, including many that address housing assistance and drug treatment.
Russell Vought, Trump’s nominee for the Office of Management and Budget (OMB), who is awaiting confirmation from the Senate, has long contended that the executive branch possesses the authority to ensure spending aligns with the president's priorities, irrespective of Congressional decisions. The funding freeze seemed aimed at preparing for a legal battle over the separation of powers, reinforcing Vought’s argument that a federal law barring the executive branch from withholding funds appropriated by Congress is unconstitutional.
During her first press briefing on Tuesday, Leavitt defended the broad funding freeze, and the budget office’s follow-up memo similarly justified the freeze amidst allegations of violations of federal law. “The reason for this is to ensure that every penny going out the door is not conflicting with the executive orders and action that this president has taken,” Leavitt stated. “This is a very responsible measure.”
The White House appeared caught off guard by the initial memo and lacked immediate answers regarding the affected programs early Tuesday. The budget office circulated a 52-page document listing thousands of potentially impacted programs, instructing agencies to address over a dozen questions by the end of the following week.
Josh Siegel and Katherine Tully-McManus contributed to this report.
Debra A Smith contributed to this report for TROIB News
