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Trump Administration Rescinds Freeze on Federal Grants and Loans

January 31, 2025
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In line with NPR, the Workplace of Administration and Price range has reversed its request for an finish to federal help, in accordance with a memo obtained by Democracy Ahead, which spearheaded a authorized problem to the try. Nonetheless, the White Home acknowledged that simply the unique letter calling for the freeze had been revoked, a revelation that solely provides to the confusion as to the long run implications of Trump’s proposed freeze.

RELATED: Dozens Arrested by ICE in a “Focused Operation” in Texas

The brand new memo recommends the heads of the manager departments and businesses ought to contact their normal councils for any questions.

“Following authorized strain from our shoppers and a federal decide’s choice in our lawsuit final night, the Trump-Vance administration has deserted OMB’s ordered federal funding freeze,” Democracy Ahead acknowledged in a press release. “We’re pleased with our brave shoppers — who symbolize communities throughout the nation — for going to court docket to cease the administration’s illegal actions.”

White Home spokeswoman Karoline Leavitt instructed reporters that the transfer merely constituted a retraction of the memo.

She mentioned makes an attempt to “finish the egregious waste of federal funding” would proceed. She acknowledged that the OMB doc has been withdrawn “to finish any confusion on federal coverage created by the court docket ruling and the dishonest media protection.” The administration believes that rescinding the memo will finish the court docket battle towards it.

Following widespread misunderstanding brought on by the initially broad memo asking for a pause in authorities help whereas it was reviewed, the White Home tried to additional clarify which applications could be unaffected on Tuesday, later stating that it could not impact Medicaid or SNAP applications, for instance.

Right now’s developments come after a federal court docket issued an order that placed on maintain efforts to cease federal funds for grants and different applications.

In line with the unique OMB doc retrieved by NPR, a brief delay in funding was scheduled to start Tuesday night, however a senior administration official indicated the pause might final as little as a day if an company concludes its applications are in compliance.

Trump Administration Rescinds Freeze on Federal Grants and Loans 
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