Politics
State of the Union: The press secretary said efforts to control “egregious waste” would continue.
The Trump White House on Wednesday rescinded an order that had paused all federal grants and loans.
That order, issued Monday in a memo from the Office of Management and Budget (OMB), had directed federal agencies to temporarily freeze financial assistance for “foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
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The reversal comes a day after a federal judge halted the order’s implementation until Feb. 3. Critics of the order said it had caused confusion and threatened services on which Americans rely, while the Trump administration said it was less sweeping than the media made it seem.
White House Press Secretary Karoline Leavitt, in a statement to reporters, said that “OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage.”
Leavitt added that executive orders on funding would remain in effect and that the administration would continue efforts “to end the egregious waste of federal spending.”