White House Refutes Claims of Reversal on Stopping Federal Grants
The White House refutes claims that it has lifted the freeze on federal assistance funding and rejects allegations that the policy was reversed within a mere two days. Read Full Article at RT.com
TroibNews 
Multiple media reports indicated that the policy was abandoned just two days after its rollout.
The White House has refuted several media claims suggesting it had altered its decision to freeze federal grants and loans, maintaining that the order is still in effect.
On Wednesday, various reports suggested the suspension of federal assistance had been lifted, with the Office of Management and Budget allegedly distributing a memo on the issue to federal agencies and executive departments. White House Press Secretary Karoline Leavitt responded on X, clarifying that only the OMB memo concerning the freeze was rescinded due to ongoing legal challenges faced by the order.
“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo,” Leavitt stated. “The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
The confusion appears to have originated from a statement issued by Democracy Forward, one of the NGOs that challenged the freeze legally. According to them, the new OMB memo now directs agency heads to consult their general counsels if they “have questions about implementing the President’s Executive Orders.” However, the NGO interpreted this as a complete elimination of the policy.
“Facing legal pressure from our clients and in the wake of a federal judge ruling in our case last evening, the Trump-Vance administration has abandoned OMB’s ordered federal funding freeze,” Democracy Forward declared in a statement, seemingly celebrating the outcome as a significant victory prematurely.
This interpretation of the memo was further bolstered by various media reports citing supposedly informed sources claiming the federal funding freeze had indeed been rescinded.
The order, which was issued on Monday, directed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.” This decision triggered chaos and widespread anxiety regarding the future of essential programs, including funding for schools and housing for low-income families.
Immediate legal challenges arose from multiple groups, resulting in a federal judge temporarily blocking the initiative on Tuesday. The ensuing confusion led the White House to clarify that “any program that provides direct benefits to Americans” was “explicitly excluded.”
Anna Muller for TROIB News
The White House has refuted several media claims suggesting it had altered its decision to freeze federal grants and loans, maintaining that the order is still in effect.
On Wednesday, various reports suggested the suspension of federal assistance had been lifted, with the Office of Management and Budget allegedly distributing a memo on the issue to federal agencies and executive departments. White House Press Secretary Karoline Leavitt responded on X, clarifying that only the OMB memo concerning the freeze was rescinded due to ongoing legal challenges faced by the order.
“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo,” Leavitt stated. “The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
The confusion appears to have originated from a statement issued by Democracy Forward, one of the NGOs that challenged the freeze legally. According to them, the new OMB memo now directs agency heads to consult their general counsels if they “have questions about implementing the President’s Executive Orders.” However, the NGO interpreted this as a complete elimination of the policy.
“Facing legal pressure from our clients and in the wake of a federal judge ruling in our case last evening, the Trump-Vance administration has abandoned OMB’s ordered federal funding freeze,” Democracy Forward declared in a statement, seemingly celebrating the outcome as a significant victory prematurely.
This interpretation of the memo was further bolstered by various media reports citing supposedly informed sources claiming the federal funding freeze had indeed been rescinded.
The order, which was issued on Monday, directed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.” This decision triggered chaos and widespread anxiety regarding the future of essential programs, including funding for schools and housing for low-income families.
Immediate legal challenges arose from multiple groups, resulting in a federal judge temporarily blocking the initiative on Tuesday. The ensuing confusion led the White House to clarify that “any program that provides direct benefits to Americans” was “explicitly excluded.”
Anna Muller for TROIB News
