The White House Office of Management and Budget withdrew its order on federal grant spending freezes on Wednesday, merely two days after its implementation caused widespread confusion and legal disputes nationwide, reports news agency AP citing sources with knowledge of the situation.
The initial directive issued Monday evening created uncertainty regarding vital financial support for states, educational institutions and organisations dependent on substantial federal funding. The Trump administration struggled to clarify which programmes would be affected by the spending pause.
Sources speaking anonymously about internal communications confirmed that the OMB cancelled the order through a brief two-sentence notification to government agencies and departments on Wednesday.
Officials in the administration explained that the temporary suspension of loans and grants was intended to verify compliance with Trump’s recent executive orders. Agencies were required to respond to specific yes-no questions about each federal programme by February 7, including queries about gender ideology promotion and abortion support.
The unclear language in the memorandum, coupled with incomplete White House clarifications throughout the day, left government officials, legislators and citizens uncertain about which programmes would face funding interruptions. Even brief funding disruptions could potentially result in job losses or delays in public service delivery.
The implementation of the freeze, originally set for 5 pm Tuesday, was temporarily halted by a federal judge until at least Monday, following an emergency session requested by grant-receiving nonprofit organisations. A separate legal challenge from Democratic state attorneys general remained unresolved.
Officials from the Trump administration confirmed that direct assistance programmes, including Medicare, Social Security, student loans and food stamps, would continue uninterrupted. However, they faced difficulties in providing precise details.
Initially, White House press secretary Karoline Leavitt was uncertain about Medicaid’s exemption status, though the administration later confirmed its exclusion from the freeze.
The impact of Trump’s funding pause initiative extended beyond Washington, despite his campaign promises. Organisations dependent on federal funding, such as Meals on Wheels, which serves elderly citizens, and Head Start, providing childcare services in low-income areas, expressed concerns about potential funding interruptions.
