Headline Roundup • January 29th, 2025
Trump Administration Rescinds Order to Freeze Federal Aid Spending
Summary from the AllSides News Team
On Tuesday, a federal judge temporarily halted the Trump administration's freeze on the issuance of existing federal grants and loans before they are reviewed. On Wednesday, Trump's administration rescinded the order.
Key Details: In a hearing conducted on Zoom, U.S. District Judge Loren AliKhan paused the freeze moments before it was to go into effect. The White House said there were exceptions, such as Medicaid payments, that would not be affected, though the reimbursement portal went down earlier. White House Press Secretary Karoline Leavitt said Wednesday that while the order was being pulled back, the administration's other efforts to halt federal spending would remain.
Key Quotes: "Americans fought back and Donald Trump backed off," Senate Minority Leader Chuck Schumer (D-NY) said.
How The Media Covered It: The Associated Press (Left bias) reported that the order left unresolved a "potential constitutional clash over control of taxpayer money." The Washington Times (Lean Right) reported that Senate Republicans had questions about the freeze, but mostly defended Trump's authority to order the review of federal grants and loans.
Featured Coverage of this Story
A White House spokesperson Wednesday said the federal funding freeze announced earlier this week by President Donald Trump’s Office of Management and Budget remains in effect despite media reports it had been rescinded.
"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 [executive orders] on federal funding remain in full force and effect, and will be rigorously implemented," Leavitt posted on X.
Chip Somodevilla/Getty Images
The Trump administration rescinded its memo calling for federal agencies to pause potentially trillions of dollars in federal grants, loans and other financial-assistance programs, a day after a federal judge temporarily blocked the directive that had sowed widespread confusion.
The White House on Wednesday issued a memo to federal employees scrapping its original memorandum, according to a document viewed by The Wall Street Journal.
The two-line memo sent just after noon by Matthew J. Vaeth, the acting director of the Office of Management and Budget, said the previous memorandum “is rescinded. If...
The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier this week provoked a backlash. In a memo dated Wednesday and distributed to federal agencies, Matthew J. Vaeth, acting director of the White House Office of Management and Budget, states that OMB memorandum M-25-13 “is rescinded.” That order, issued Monday, instructed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal...
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