The Trump administration maintains that its controversial federal funding freeze remains in place, despite the White House rescinding an official memo implementing the policy. White House Press Secretary Karoline Leavitt pushed back on reports that the freeze had been lifted, clarifying that the rescission of a key memorandum does not equate to a reversal of President Donald Trump’s executive order.
According to NBC News, the administration officially rescinded the Office of Management and Budget (OMB) memo on Wednesday, following a federal court’s decision to block the sweeping freeze on all federal grants and loans. The abrupt funding halt had created widespread disruption, particularly affecting programs like Medicaid.
The OMB issued a brief statement announcing the reversal, stating: “OMB Memorandum M-25-13 is rescinded.” However, Leavitt quickly issued a statement insisting that the broader policy remains intact.
“This is NOT a rescission of the federal funding freeze,” she emphasized. “It is simply a rescission of the OMB memo.” She further explained the rationale behind the decision: “Why? To end any confusion created by the court’s injunction,” she said. “The President’s EOs on federal funding remain in full force and effect and will be rigorously implemented.”
Despite Leavitt’s assurances, the funding freeze remains on hold due to the federal court ruling, which temporarily blocks its enforcement until at least February 3. Legal analysts suggest that the administration’s next steps could determine whether the freeze faces additional legal challenges or a potential permanent injunction.
The decision to rescind the OMB memo but insist the funding freeze remains in place has left many questioning the administration’s legal strategy. Critics argue that the White House is attempting to maintain the policy’s chilling effect while avoiding direct legal confrontation over its legality.
Meanwhile, Democratic lawmakers and state officials, who have strongly opposed the freeze, continue to push for greater oversight of the administration’s funding policies. Several state attorneys general have signaled their intent to challenge any renewed efforts to enforce the executive order, setting up a potential showdown in the courts.
As the legal battle unfolds, federal agencies and recipients of government funding remain in limbo, uncertain about the long-term implications of Trump’s order. For now, the court’s decision keeps funding flowing, but the administration’s insistence on enforcing the freeze signals that the fight is far from over.