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White House Rescinds Memo Freezing Trillions of Dollars of Federal Grants and Loans

HeadlineJan 30, 2025

The White House on Wednesday rescinded a memo from the Office of Management and Budget that briefly froze trillions of dollars of federal grants and loans, even though the money has already been appropriated by Congress. The order set off panic and mass confusion across the federal bureaucracy, briefly disrupting funding for Medicaid, housing and other public services Tuesday before a federal judge put a temporary hold on the plan. On Wednesday, a second federal judge, U.S. District Judge Jack McConnell in Rhode Island, signaled he, too, would block the Trump administration from withholding federal disbursements, writing, “I am … very concerned about the irreparable harm which has clearly been put forth.” On Wednesday, Press Secretary Karoline Leavitt insisted the reversal was not a rescission of the federal funding freeze and said the White House would continue to seek ways to eliminate funding for what it called “woke ideologies.”

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