Trump Administration Rescinds Federal Grant Freeze Memo After Legal Block and Widespread Backlash

Benzinga

Trump’s administration rescinded a memo freezing most federal grants and loans after heavy criticism and a court block. The Office of Management and Budget had directed federal agencies to halt disbursements for programs that didn't align with Trump’s agenda. A federal district judge temporarily halted the initial order, which caused chaos and confusion in Washington. White House Press Secretary Karoline Leavitt clarified that the rescission only applies to the OMB memo, not the broader federal funding freeze. She emphasized that the President's executive orders on federal spending remain in effect and will continue to be enforced.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Trump's administration rescinded a memo freezing most federal grants and loans

00:06after heavy criticism and a court block.

00:08The Office of Management and Budget has directed federal agencies to halt

00:12distributes for programs that didn't align with Trump's agenda.

00:15A federal district judge temporarily halted the initial order,

00:18which caused some chaos and confusion in Washington.

00:22White House Press Secretary Caroline Leavitt clarified that the recession

00:26only applies to the OMB memo, not the broader federal funding freeze.

00:31She emphasized that the president's executive order on federal spending

00:34remain in effect and will continue to be enforced.

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