White House Budget Office Rescinds Temporary Federal Financial Aid Freeze

A federal judge had blocked the move before it went into effect on Tuesday.

The Office of Management and Budget has rescinded its two-page memo ordering all federal agencies to temporarily suspend all federal financial assistance, with exceptions for Social Security and Medicare. The measure, set to be effective Tuesday at 5 PM, was meant to ensure that funding did not continue to “advance Marxist equity, transgenderism, and green new deal social engineering policies.”

U.S. District Judge Loren AliKhan blocked the freeze on Tuesday, before it went into effect. The administrative stay would have been in effect until February 3.

The White House budget office lifted the aid pause in part due to the injunction and also due to confusion in its lack of specificity, such as the exception for financial assistance “provided directly to individuals.” Agency heads were unsure if this included grant funding provided to organizations or states that then provide funding to individuals.

White House Press Secretary Karoline Leavitt stated, “In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage.”

“This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending,” the press secretary said. “In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”

As the Lord Leads, Pray with Us…

  • For President Trump and members of his administration as they seek to decrease federal spending.
  • For wisdom for federal judges as they hear and rule on challenges to the president’s policies.

Sources: Politico, Townhall, Newsweek

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