President Donald Trump’s budget office rescinded an order freezing spending on federal grants less than two days after it caused widespread confusion and legal challenges across the country.
Driving the news: The Monday evening order from the White House Office of Management and Budget had sparked uncertainty over a crucial financial lifeline for states, schools, and organizations that rely on trillions of dollars from Washington.
The big picture: The rescission of the order occurred on Wednesday, via a two-sentence notice to agencies and departments.
- The Trump administration framed the proposed halt to federal grants and loans as a brief pause to allow for an across-the-board review to align spending with his ideological agenda, rather than an impoundment.
Go deeper: The White House’s freeze was expected to affect trillions of dollars and a wide range of programs, from the National Science Foundation to Meals on Wheels, sparking at least two lawsuits.
- The halt would not have affected programs that directly send money to individual people, including Social Security, Medicare, food stamps, student loans, and scholarships.
- If implemented, the pause would have caused widespread disruption and faced legal challenges from nearly two dozen Democratic states and non-profit organizations representing federal funding recipients.