Home Government White House Budget Office Rescinds Federal Funding Freeze

White House Budget Office Rescinds Federal Funding Freeze

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Photo via Gage Skidmore Flickr

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The Trump’s administration’s Office of Management and Budget released a memo Wednesday rescinding a controversial order that froze a wide swath of federal financial assistance, which had paralyzed many federal programs and caused a huge uproar on Capitol Hill.

The decision came amid strong behind-the-scenes pushback from Republican lawmakers on Capitol Hill, according to a GOP senator who was apprised of the decision to reverse the policy order.

The reversal was signed by Matthew Vaeth, the acting director of the White House budget office.

The order, issued Monday evening from Matthew Vaeth, the acting director of the Office of Management and Budget, sent shockwaves across the country and drew outrage from politicians

The funding freeze was originally scheduled to kick in at 5:00 pm ET on Tuesday and expected to remain in place through at least mid-February, The New York Times reported. Vaeth’s memo ordered that all federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”

The memo swiftly drew a legal challenge filed by several nonprofit groups, arguing that it violated both the First Amendment and federal law on how executive orders can be implemented, and the plaintiffs secured an emergency hearing that took place just minutes before the funding freeze was set to go into effect.

This is a breaking news story. Please check back for updates.

3 COMMENTS

  1. “… The memo swiftly drew a legal challenge filed by several nonprofit groups…”
    You don’t suppose those unnamed nonprofits receive a big chunk of government largesse, do you?

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