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White House rescinds federal aid funding freeze

January 29, 2025
White House rescinds federal aid funding freeze

By Kaitlan Collins and Alayna Treene | CNN

(CNN) — The White House Office of Management and Budget has rescinded the federal aid freeze, according to a memo obtained by CNN from a Trump administration official.

“OMB Memorandum M-25-13 is rescinded.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 memo reads.

The White House budget office had ordered the pause on federal grants and loans, according to an internal memorandum sent Monday, which unleashed confusion and anxiety even as the White House said it was not as sweeping an order as it appeared.

Though White House aides publicly blamed the media for causing the confusion, arguing that none existed within the building, the administration had received a flood of calls from lawmakers and state officials with questions about its impact on their home states.

Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget Acting Director Matthew Vaeth said in the original memorandum, a copy of which was obtained by CNN, citing administration priorities listed in past executive orders.

On Tuesday afternoon, a federal judge temporarily blocked part of the Trump administration’s aid freeze.

This is a breaking story and will be updated.

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