Connect with us

Regional News

Trump Spending Freeze Memo That Provoked Confusion, Chaos Rescinded

Published

on

WASHINGTON — The Trump administration on Wednesday rescinded a memo issued less than 48 hours earlier that had called for a spending freeze on numerous federal grant and loan programs.

The original memo, released Monday evening by the Office of Management and Budget, led to widespread confusion and frustration by organizations like Meals on Wheels and grantees that rely on funding from the Department of Veterans’ Affairs, as well as members of Congress from both political parties.

Maine Republican Sen. Susan Collins, chairwoman of the Appropriations Committee, welcomed OMB rescinding the memo.

“I am pleased that OMB is rescinding the memo imposing sweeping pauses in federal programs,” Collins wrote in a statement. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”

Senate Appropriations Committee ranking member Patty Murray, D-Wash., released a statement on Wednesday afternoon that the Trump administration reversing course was the right decision.

“This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country—real people made a difference by speaking out,” Murray wrote. “Still, the Trump administration—through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law—caused real harm and chaos for millions over the span of the last 48 hours which is still ongoing.”

White House press secretary Karoline Leavitt issued a written statement Wednesday afternoon that seemed to suggest rescinding the memo was meant to get around a judge’s order.

“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” Leavitt wrote in a statement. “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. This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”

OMB’s decision to rescind the memo Wednesday followed the White House making public assurances Tuesday that the spending freeze wouldn’t impact Social Security, Medicare, Medicaid and direct food assistance programs like the Supplemental Nutrition Assistance Program, or SNAP.

Two separate lawsuits seeking to block the OMB memo from taking effect on Tuesday evening at 5 p.m. were filed in federal district court.

The lawsuit filed by the National Council of Nonprofits, American Public Health Association and Main Street Alliance led to a federal district court judge placing a temporary hold on the planned spending freeze until Feb. 3 at 5 p.m.

A separate federal judge is set to hear arguments from Democratic state attorneys general Wednesday afternoon over whether he should issue a temporary restraining order that would also block the OMB memo from taking effect while the court case continues.

It wasn’t immediately clear how OMB rescinding its Monday evening memo would impact those two lawsuits.

This is a developing story that will be updated.

Last updated 2:06 p.m., Jan. 29, 2025

by Jennifer Shutt, Virginia Mercury


Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.

Front Royal, VA
27°
Sunny
7:17 am5:35 pm EST
Feels like: 16°F
Wind: 12mph NW
Humidity: 32%
Pressure: 30.04"Hg
UV index: 2
MonTueWed
37°F / 21°F
43°F / 30°F
36°F / 18°F
Interesting Things to Know5 hours ago

Data Centers in Space: Brilliant Innovation or Pie in the Sky?

Health6 hours ago

6 Simple Steps to Keep Your Feet Healthy: Happy Feet = a Healthier You

Local News23 hours ago

League of Women Voters Marks 106 Years With Push to Empower Voters in the Valley

Local News1 day ago

VDOT: Warren County Traffic Alert for February 2 – 6, 2026

Agriculture1 day ago

DNA Modification in Oats: A Breakthrough with Widespread Benefits

Interesting Things to Know1 day ago

Star-Studded Birthdays: Which Celebs Share Yours?

Local News1 day ago

Two WCHS Juniors Aim for Virginia DECA State Office

Interesting Things to Know1 day ago

4 Meal Types to Consider for Treating Your Wedding Guests

State News2 days ago

Virginia’s Newest Troopers Include Descendant of WWII Hero Desmond Doss

State News2 days ago

Virginia State Police Ongoing Crime Suppression Operations, Recovering Firearms, Narcotics, and Investigating Human Trafficking

State News2 days ago

Democrats Try to ‘Balance’ Renters’ Rights With Landlords’ Rights in Proposed Housing Bills

State News2 days ago

Virginia Delegate’s Bill Would Limit Where High-Voltage Transmission Lines Can Be Built

Regional News2 days ago

Freedom 250 IndyCar Race to Bring Speed and Spectacle to Nation’s Capital in August

Automotive2 days ago

What to Do and What Not to Do If You’re in a Car Collision

Regional News2 days ago

US Senate Poised to Send House Spending Deal in Race to Avert Partial Shutdown

Obituaries2 days ago

Robert Glenn “Bob” Coverstone (1942 – 2026)

Regional News2 days ago

Trump Launches Great American Recovery Initiative to Address Addiction Crisis

Interesting Things to Know2 days ago

Battery Technology Leading the Renewable Revolution

Community Events3 days ago

Children Activities by Samuels Public Library for the Month of February

Community Events3 days ago

Muley Fanatic Foundation’s 7th Annual Banquet Brings Conservation and Community Together

Obituaries3 days ago

Jane Duble Riddleberger (1946 – 2026)

Obituaries3 days ago

Sean G. “Bubba” Collins (1989 – 2026)

Obituaries3 days ago

William “Bill” Hamilton Rhodes I (1941 – 2026)

report logo
Arrest Logs3 days ago

POLICE: 7 Day FRPD Arrest Report 1/26/2026

Local News3 days ago

Blue Ridge Wildlife Center Patient of the Week: Red-tailed Hawk