President Trump's budget office rescinded a memo that sought to freeze federal grants, which caused confusion and legal challenges nationwide. The memo triggered uncertainty for states, schools, and organizations reliant on government funds, leading to administrative scrambling to clarify which programs would be affected. Despite the withdrawal, Trump's executive orders targeting spending in areas like diversity and climate change remain in effect. The situation illustrates the complexities of executing Trump's aggressive budgetary agenda, as temporary funding interruptions could severely impact essential public services.
The Monday evening memo from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington.
Even temporary interruptions in funding could cause layoffs or delays in public services.
The White House confirmed that OMB pulled the memo Wednesday in a two sentence notice sent to agencies and departments.
Administration officials said the notice to halt loans and grants was necessary to conduct a review to ensure that spending complies with Trump's recent blitz of executive orders.
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