White House budget office rescinds freeze on federal aid funding

January 29, 2025

The White House Office of Management and Budget (OMB) has rescinded a freeze on federal assistance funding that caused widespread confusion across all levels of government. 

CNN reports that an OMB memo obtained from a Trump administration official formally walks back the controversial directive. 

“OMB Memorandum M-25-13 is rescinded,” the new memo from acting OMB director Matthew J. Vaeth reads. “If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.” 

In the original memo, OMB said the pause was intended to allow the new administration to review agency programs and ensure that the funding aligns with President Donald Trump’s policies and executive orders.

The memo also directed federal agencies to pause all activities associated with open notices of funding opportunities (NOFOs), like conducting merit review panels.  

The freeze was scheduled to go into effect at 5 p.m. ET on Tuesday, but its implementation was blocked by a federal judge just before the deadline. 

The Trump administration issued a Q&A on Tuesday to clarify which executive orders are affected by the recent freeze. 


Photo by René DeAnda on Unsplash

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