ON NOW Newsday

White House Rescinds Order Freezing Federal Grants After Backlash

The White House has rescinded its order freezing federal grants after backlash over disruptions to funding for schools, housing, and healthcare.

The White House budget office has rescinded an earlier order that froze federal grants, following widespread confusion and backlash over the administration’s decision to halt spending.

In a memo dated Wednesday and distributed to federal agencies, Matthew J. Vaeth, acting director of the White House Office of Management and Budget (OMB), formally withdrew the order.

“OMB memorandum M-25-13 is rescinded,” Vaeth wrote, referring to the directive issued Monday that instructed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.”

The initial freeze, which became public on Monday, sparked concerns that critical government programs—funding for schools, housing, and healthcare—could be disrupted.

Reports emerged of states struggling to access Medicaid funds, and public housing authorities said they were locked out of their funding portal as of Wednesday.

In response to growing concern, White House spokeswoman Karoline Leavitt sought to reassure the public on Tuesday, stating that the freeze would not impact assistance for individuals.

However, confusion persisted until the administration formally reversed course with Wednesday’s memo.

Boluwatife Enome

Follow us on:

ON NOW Newsday
  • en