White House Budget Office Rescinds Memo on Federal Aid Freeze 👉 Updatem News

The OMB rescinded the previous memorandum less than a day after a federal judge issued a temporary pause on the aid freeze.

The White House Office of Management and Budget (OMB) on Jan. 29 rescinded a memo pausing federal loans, grants, and other financial assistance.

OMB Acting Director Matthew J. Vaeth issued a memorandum on Wednesday to all heads of executive departments and agencies rescinding his previous memo that directed them to pause federal aid.

“OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel,” the document states.

White House press secretary Karoline Leavitt confirmed the memo in a statement to The Epoch Times. The OMB is responding to the injunction issued by a federal judge on Tuesday to “end any confusion on federal policy created by the court ruling.”

“The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments,” she said.

Leavitt added that the new OMB memo should “effectively end” the case brought by non-profit organizations and advocacy groups on Tuesday so that the government can focus on the president’s agenda.

A White House official emphasized that the move is simply to “END the confusion and END the federal injunction,” but not to halt the intended freeze of federal aid “at odds with the President’s [executive order].”

Leavitt posted on X minutes later, further clarifying the OMB’s memo.

“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the [previous] OMB memo … to end any confusion created by the court’s injunction,” she said.

“The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”

On Tuesday, U.S. District Judge Loren AliKhan called for an emergency video conference regarding the advocacy groups’ lawsuit one hour before the freeze was to take effect at 5 p.m. ET.

AliKhan granted a “brief administrative stay,” ordering the Trump administration to refrain from blocking “open awards,” or funds that had been slated for disbursement, until at least Feb. 3.

However, she added that the ruling would “maintain the status quo” and does not prevent the Trump administration from suspending funds for new programs, nor does it require resuming expired funding.

Another hearing is scheduled for Feb. 3 at 11 a.m. ET, where AliKhan will determine the next steps for the case.

The National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE, a New York LGBT nonprofit, filed the lawsuit, arguing the Trump administration’s plan would “have a devastating impact on hundreds of thousands of grant recipients.”

Additionally, three Democratic state attorneys general joined to file a separate lawsuit challenging the original OMB memo, which directed all federal agencies to pause grants, loans, and other financial assistance while the administration reviews the affected programs.

Emel Akan contributed to this report.

Original News Source Link – Epoch Times

Running For Office? Conservative Campaign Consulting – Election Day Strategies!