WASHINGTON — The White House Office of Management and Budget (OMB) on Wednesday rescinded a controversial memo that had frozen federal loans and grants, following widespread confusion, legal challenges, and pushback from both Republican lawmakers and state officials, including Wisconsin Governor Tony Evers.
The memo, originally issued late Monday, led to immediate concerns from states, schools, and organizations that rely on federal funding for essential programs. The Trump administration stated that the spending freeze was intended to review federal spending in accordance with the president’s executive orders on climate change and diversity, equity, and inclusion programs. However, just two days later, the White House reversed course with a brief notice signed by acting OMB director Matthew Vaeth.
Despite the formal rescission of the memo, White House press secretary Karoline Leavitt emphasized that the executive orders behind the spending review remain in effect and will be “rigorously implemented” by all federal agencies. Leavitt blamed the ensuing confusion on news outlets and ongoing court cases rather than the administration’s actions.
The abrupt freeze and subsequent reversal sparked strong reactions on Capitol Hill, with GOP lawmakers reporting a flood of calls from concerned constituents and community leaders worried about potential funding losses. According to The Hill, behind-the-scenes Republican pressure contributed to the decision to rescind the memo.
In Wisconsin, Gov. Evers sharply criticized the administration’s handling of the situation, calling the policy “reckless” and warning that it continues to create instability for essential services. In a statement, Evers said, “This is a concept of a plan that should not be implemented, salvaged, or resurrected in this form or any other.” He added that the policy had already caused “unnecessary chaos” for children, families, farmers, and emergency services across the state.
Evers also raised concerns that despite the memo’s rescission, the administration remains committed to enforcing policies that could obstruct Wisconsin’s access to federal funds. He vowed to use “every power available” to fight against any effort that threatens essential resources for the state’s residents.
As legal battles continue over the administration’s broader policy agenda, state officials and federal lawmakers alike will be watching closely to see how the White House moves forward in its approach to federal spending oversight.
Last Update: Jan 29, 2025 4:24 pm CST
