Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.
The Trump administration has officially rescinded a memo that temporarily halted a wide range of federal financial assistance programs following intense political backlash & legal challenges.
Some shit you should know before you read: Yesterday, the White House announced a temporary freeze on federal financial assistance, including grants and loans, through an internal memorandum issued by the Office of Management and Budget (OMB). The freeze, which was set to take effect Tuesday evening, was intended to allow the administration to review federal spending and ensure that funding aligned with its policy priorities. White House officials insisted that the move was not a complete funding halt but rather a routine evaluation of government programs. Press Secretary Karoline Leavitt later clarified that programs providing direct benefits, such as Social Security, Medicare, and SNAP, were exempt. Still, the initial order led to disruptions, including outages in Medicaid’s web portal and funding delays for Head Start and community health initiatives.
What’s going on now: In a reversal from their previous directive, the White House OMB has officially rescinded the memo that froze federal financial assistance. The reversal came after mounting pressure from Republican lawmakers who had been flooded with calls from community leaders confused and concerned about losing federal grants. Senate Appropriations Committee Chair Susan Collins called the original memo ‘overreaching’ and said it had created ‘unnecessary confusion and consternation.’ Senate Majority Leader Chuck Schumer claimed victory over the decision, stating, ‘Donald Trump just rescinded his horrible OMB freeze. He should now rescind Russell Vought’s nomination for OMB.’
The initial funding freeze sparked widespread disruptions, with key federal programs, including Medicaid and Head Start, experiencing immediate fallout. The outage of Medicaid’s web portal left state agencies unable to access critical funds, raising alarms about potential gaps in healthcare services. Republican senators admitted that the freeze had prompted a lot of questions about its scope and impact, with some lawmakers expressing frustration that they were not given advance notice.
This all comes as the White House and President Trump have criticized media outlets and Democrats for what they claim was a misleading portrayal of the initial funding freeze. White House Press Secretary Karoline Leavitt accused the press of creating unnecessary panic, stating that the memo had been ‘wildly mischaracterized’ and that ‘dishonest media coverage’ had fueled confusion about the administration’s intentions. Trump himself took to social media to denounce the backlash, arguing that the freeze was a temporary and routine review of federal spending, not an attempt to cut essential programs. He said, ‘The Fake News and Radical Democrats LIED about what we were doing—they want wasteful spending and corruption to continue!’
