WASHINGTON — The White House on Wednesday rescinded a far-reaching memo ordering a freeze to many federal disbursements after a judge stayed the order Tuesday evening — though President Trump’s aides insisted the move doesn’t change much.
“OMB Memorandum M-25-13 is rescinded,” read the terse communique to departments and agencies from acting White House budget director Matthew Vaeth that was first reported by NBC News.
“This move is to end the confusion and end the federal injunction,” a White House official said.
“This does not halt the intended freezing of monies at odds with the president’s EOs.”
The rescinded memo had ordered that agencies “temporarily pause, to the extent permitted by law, grant, loan or federal financial assistance programs that are implicated by the President’s Executive Orders,” according to the Office of Management and Budget.
The instructions, intended to put bureaucrats on notice amid reports of spending that ran contrary to Trump’s initial policy proscriptions, resulted in confusion about what programs were impacted — prompting the White House to clarify that major entitlements like Social Security and Medicare weren’t implicated.
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House press secretary Karoline Leavitt said.
“The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments. This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
Trump also has paused the distribution of foreign aid.
“I am pleased that OMB is rescinding the memo imposing sweeping pauses in federal programs,” Senate Appropriations Committee Chair Susan Collins (R-Maine) told Fox News. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”
The Elon Musk-led Department of Government Efficiency (DOGE) advisory group is looking into specific spending that can be slashed and White House press secretary Karoline Leavitt highlighted US-funded condoms for Gaza as one such example.
Efforts to pare down government spending come as congressional Republicans prepare legislation seeking to implement tax cuts that Trump campaigned on, including efforts to cut federal taxes on tips, overtime and Social Security benefits.
Trump says that the dip in revenue will be offset by increasing tariffs on foreign goods — with a looming 25% tariff on Canadian and Mexican imports set to take effect Feb. 1, followed by a fresh 10% tariff on Chinese goods and new tariffs on aluminum, copper and steel.
