On January 29, 2025, the White House Office of Management and Budget (OMB) rescinded an order freezing federal grants after the administration’s move to halt spending earlier this week provoked a backlash. An OMB memo distributed to federal agencies states that OMB memorandum M-25-13 “is rescinded.” That order, issued Monday (1/27/25), instructed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.”
The White House order freezing federal grants caused mass chaos and confusion across Washington, appearing to imperil government programs that fund schools, provide housing and ensure that low-income Americans have access to health care.
Source: Washington Post
Previously, on January 28, 2025, a U.S. District judge paused the U.S. Government’s temporary freeze on federal funding just minutes before it was set to take effect at 5 p.m. that day. The Washington, D.C. judge blocked the Trump administration’s directive for one week.
The legal challenge came from a coalition of organizations that filed a motion for a temporary restraining order. A federal memo issued on Monday, January 27th, directed agencies, including the U.S. Department of Education, to temporarily pause financial assistance by 5 p.m. the next day.
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