White House Rescinds Memo Freezing Government Spending

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Well, that was quick.

Less than two days after the U.S. Office of Management and Budget (OMB) issued a memorandum directing all government agencies to pause activities related to their federal financial assistance programs to ensure they don’t conflict with President Trump’s “anti-woke” agenda, the OMB has rescinded it.

In a follow-up memo sent out today that is shorter than this article already is, the White House says:

“OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”

The directive threatened trillions of dollars in loans, grants, and other financial assistance and was likely unconstitutional, according to experts. The imperiled federal funding had been already allocated by Congress to support everything from disaster aid, healthcare research, and educational programs to massive infrastructure projects like transmission lines, battery manufacturing facilities, and emerging technologies.

Minutes before the funding freeze was set to take effect at 5:00 PM ET yesterday, U.S. District Judge Loren L. AliKhan blocked the order, prompted by a lawsuit brought on by nonprofit groups that receive federal funds. The administrative stay was supposed to last until Monday afternoon.

“Without this funding, Plaintiff States will be unable to provide certain essential benefits for residents, pay public employees, satisfy obligations, and carry on the important business of government,” 22 state attorneys general, all Democrats, argued in the lawsuit.

“It seems like the federal government currently doesn’t actually know the full scope of the programs that are going to be subject to the pause,” theorized District Judge AliKhan.

Less than 24 hours after issuing M-25-13 and instigating widespread confusion across federal agencies, the White House attempted to clarify the policy, saying programs that provide direct benefits to Americans like Social Security, Medicare, and food assistance would be excluded from the freeze. Still, it isn’t clear exactly what policies or agendas President Trump is trying to cut out of budgets, although some of the text of M-25-13 lends a clue.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” the rescinded memo reads in part.

Last week, President Trump also issued a series of executive orders undercutting clean energy initiatives that halted wind development and leasing, cut off the disbursement of Inflation Reduction Act (IRA) funding to green projects, and signaled America’s intent to pull out of the Paris Agreement (again). Trump declared the United States was amidst an “energy emergency,” and greenlit drilling in previously protected areas while openly embracing the burning of more fossil fuels to feed ambitious data center projects.

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