Federal Policy
UPDATE: Trump Administration Cancels OMB Memo That Paused Federal Fund Awards
Trump White House spokeswoman Karolyn Leavitt said OMB's funding award halt memo was rescinded "to end any confusion on federal policy."
Credit: AP Photo/Evan Vucci
In an abrupt about-face on Jan. 29, the Trump administration has been forced by court order to cancel a memo released yesterday by acting Office of Management and Budget Director Mathew Vaeth that ordered "temporary pause" of all previous federal funding awards by agencies to be reviewed for compliance with a flurry of President Donald Trump's executive orders.
The mandate—issued with little detail that generated massive confusion among recipients and industry groups—sparked an immediate lawsuit by one trade group that convinced a federal judge to issue a temporary restraining order. At the same time, 23 state attorneys general sued separately in a Rhode Island federal court to halt the memo. “I am very concerned with the irreparable harm which has clearly been put forth,” that court's Chief Judge John McConnell said on Jan. 29.
Vaeth announced in updated guidance on Jan. 29 that the OMB Memorandum M-25-13 "is rescinded." He advised agencies with questions about implementing the president's executive orders to contact their general counsels.
In an emailed statement to media, White House press secretary Karoline Leavitt said, “In light of the injunction," OMB took the action "to end any confusion on federal policy created by the court ruling," but added that the executive orders related to funding reviews are in effect.
She further claimed in a post on the X social media site that the action is "NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo ... to end any confusion created by the court’s injunction. The President’s [executive orders] on federal funding remain in full force and effect, and will be rigorously implemented."
In a new statement, Sen. Patty Murray (D-Wash.), appropriations committee vice chair, said the rescinded edict resulted from "real people [who] made a difference by speaking out."
Russell Vought, a former OMB director in the first Trump term who is said to have developed much fiscal policy contained in the ultra-conservative Project 2025 that is being incorporated into current administration policy, could gain Senate confirmation to repeat that role on Jan. 30 despite official objections by 11 Democrats.
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