White House Rescinds Controversial Spending Freeze—But Retains Executive Power to Reinstate

The Trump administration on Wednesday rescinded its sweeping freeze of federal assistance, a move that had sparked confusion and chaos across the country. The decision to reverse course came after a federal judge placed a temporary block on the freeze on Tuesday, according to a memo obtained by POLITICO.

The initial funding freeze, implemented on Monday, led to significant uncertainty as states, agencies, and organizations scrambled to assess its impact on billions of dollars in federal aid. The freeze affected numerous programs, including those that provide school meals and support for homeless veterans. While the latest memo lifts the freeze, it does not affect other funding holds, particularly those related to climate initiatives and infrastructure projects.

White House Defends Policy Amid Legal and Political Pushback

The rescission memo, which was brief and provided little explanation, instructed agencies to direct any questions regarding the implementation of executive orders to their general counsels. White House Press Secretary Karoline Leavitt stated that the budget office withdrew the memo to “end any confusion on federal policy created by the court ruling and the dishonest media coverage.” However, she emphasized that the president’s executive orders on federal spending remain fully in effect and will be strictly enforced.

“This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending,” Leavitt added. She also hinted at more executive actions in the coming months to curb what the administration perceives as wasteful spending.

Mixed Reactions From Lawmakers

The rescission drew mixed reactions from lawmakers. Senate Appropriations Chair Susan Collins (R-Maine) welcomed the decision, describing the initial memo as “overreaching” and causing unnecessary confusion. “While it is not unusual for incoming administrations to review federal programs and policies, this memo created unnecessary consternation,” Collins said.

Democrats were less forgiving. Senator Martin Heinrich (D-N.M.) criticized the administration’s handling of the situation, stating, “Despite all the rhetoric about how this time was gonna be smoother and people were going to know what they’re doing, when you have Donald Trump and Stephen Miller in the White House, chaos is gonna happen.” Senator John Hickenlooper (D-Colo.) echoed these concerns, warning that the funding freeze had generated serious confusion, especially for those in vulnerable economic situations.

“For people living closer to the edge, having a hard time making their rent, confusion is not their friend,” Hickenlooper said. “Who knows what he’ll try next?”

Concerns Remain Over Uncertain Funding for Key Programs

Despite the administration’s reversal, concerns persist over funding for projects impacted by the president’s executive orders. The Carbon Capture Coalition, an industry group focused on carbon removal technologies, remains uncertain about the status of $600 million in Energy Department grants tied to climate-related legislation from the Biden era.

“We are still very much in wait-and-see mode and are awaiting further guidance from the administration and DOE on the earlier executive order that pauses the implementation of both the Inflation Reduction Act and Bipartisan Infrastructure Law,” said Jessie Stolark, the coalition’s executive director.

White House Attempts to Clarify Scope of Freeze

Amid mounting political backlash, the Office of Management and Budget released a follow-up memo on Tuesday aiming to clarify the scope of the freeze. The clarification reassured the public that key benefits, including the Supplemental Nutrition Assistance Program (SNAP) and student loans, would not be impacted. The memo also reiterated that agencies were only required to pause funding for programs that explicitly violate one of the president’s executive orders, which target foreign aid, diversity and inclusion efforts, and environmental spending approved by Congress.

As the administration moves forward with its budgetary policies, lawmakers and advocacy groups remain vigilant, wary of potential new executive actions that could further disrupt federal funding and services. The rescinded freeze may have provided temporary relief, but the broader implications of Trump’s spending policies continue to fuel political and legal battles across Washington.

From : News
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