UPDATE: White House Press Secretary Says Freeze On Federal Grants & Loans ‘Remain In Full Force & Effect’

UPDATE: White House Press Secretary Says Freeze On Federal Grants & Loans ‘Remain In Full Force & Effect’

Update #3: (Jan 29, 2025): Chile, another update has been released on Trump’s controversial plans to freeze federal grants and loans. Responding to reports that the White House released a memo rescinding the pause, Press Secretary Karoline Leavitt said in a statement,

“This is NOT a rescission of the federal funding freeze.

It is simply a rescission of the OMB memo.

Why? To end any confusion created by the court’s injunction.

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

Update #2: (Jan 29, 2025):  President Trump has pulled back his order to freeze trillions in federal grants and loans.

According to new reports, the Trump administration rescinded the pause today (Jan. 29) following intense backlash from the public. The brief memo from the Office of Management and Budget obtained by the HuffPost said,

 “OMB Memorandum M-25-13 is rescinded.”

This comes after a federal judge temporarily blocked the highly criticized freeze.

[VIA]

Update #1: (Jan 28, 2025): A federal judge in Washington, D.C., temporarily blocked the Trump administration’s effort to freeze up to $3 trillion in federal grants and loans.

This ruling came after activists from Democracy Forward filed a lawsuit arguing that the freeze violated the First Amendment and the Administrative Procedure Act. Judge Loren AliKhan’s decision followed claims from state agencies and nonprofits that the funding freeze caused widespread confusion and disruption.

Skye Perryman, president of Democracy Forward, expressed gratitude for the ruling, stating, “We are grateful for this administrative stay to allow our clients time to sort through the chaos created by the Trump administration’s hasty and ill-advised actions.” The freeze, outlined in a memo from Matthew Vaeth of the Office of Management and Budget, targeted programs related to diversity, equity, and inclusion (D.E.I.) and initiatives like the Green New Deal.

Although the White House later clarified that mandatory programs, like Medicaid, would continue, confusion still persisted across the country.

Original Story: (Jan 28, 2025): President Donald Trump’s administration has paused federal grants and loans across multiple sectors, raising widespread concern over the potential impact on critical programs.

An internal memo from the Office of Management and Budget (OMB) instructed federal agencies to temporarily halt financial assistance programs, excluding Social Security, Medicare, and direct payments to individuals.

Matthew Vaeth, the acting director of the OMB, wrote in the memo:

“The use of federal resources to advance Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”

Critics, including Democratic leaders, warn that the freeze could disrupt essential services such as food assistance, education programs, suicide hotlines, cancer research, and disaster relief. While the administration claims the pause is temporary, lawmakers demand its reversal, calling it illegal since Congress has already approved the funding. They also cite risks to public well-being and national security.

The freeze, set to take effect today (Jan. 28) at 5 p.m., aligns with Trump’s recent executive orders targeting foreign aid, diversity initiatives, and environmental projects. However, the full scope of its implications remains unclear.

What do you think about this decision? Share your thoughts below!

[VIA]