The Donald Trump administration on Wednesday rescinded a a controversial memo pausing all federal grants that caused confusion and chaos across the government in a stunning reversal for the new president.
HuffPost obtained the brief new memo cancelling the previous one without explanation: “OMB Memorandum M-25-13 is rescinded.”
The original order pausing federal financial assistance caused a political uproar and consternation among recipients of federal grants, and it had seemingly set the stage for a constitutional showdown.
Instead, one of Donald Trump’s first big moves as president appears to have resulted in an epic climbdown.
Just hours earlier on Wednesday, White House press secretary Karoline Leavitt defended the spending freeze, claiming it had been wilfully misunderstood.
“There’s no confusion within this building. I know there is again a lot amongst the media, and those who don’t seem to just be able to read a memo and take it for what it is,” Leavitt told reporters. “The American people should not be confused about this.”
A federal judge on Tuesday issued an injunction postponing the spending freeze until Monday, so it had not taken effect as scheduled ― but policymakers and grant recipients alike were concerned and unsure about what programs would be affected.
After the new memo went out, Leavitt insisted the spending freeze had not actually been rescinded and that the rescission only applied to the memo itself.
“It is simply a rescission of the OMB memo,” Leavitt said on social media. “Why? To end any confusion created by the court’s injunction.”
A senior administration official told HuffPost the original memo had served its purpose in helping agencies comply with the president’s prior orders curtailing gender ideology and “diversity, equity and inclusion” initiatives.
The original order, billed as a “temporary pause” on grants and loans, said federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance” that might be contrary to Trump’s recent executive orders.
A footnote in the order said financial assistance did not include “assistance provided directly to individuals,” and that Social Security and Medicare wouldn’t be affected.
The footnote was little assurance to the organisations that use federal grants to distribute meals to the elderly, for instance, or heating assistance to people with low incomes. Leavitt said beneficiaries of those programmes were protected in the original memo even though they don’t receive assistance directly from the federal government.
Ron Boyd, president of the Local Office on Aging in Roanoke, Virginia ― one of hundreds of nonprofits across the country that helps administer federal grants for senior support services, including for home-delivered meals and transportation to medical appointments ― said the rescission memo came as a relief.
“We know we can draw money down now. That was the major concern,” Boyd told HuffPost.
And someDemocrats immediately hailed the rescission memo as a victory.
“This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country — real people made a difference by speaking out,” Senator Patty Murray said in a statement. “Still, the Trump administration — through a combination of sheer incompetence, cruel intentions, and a wilful disregard of the law — caused real harm and chaos for millions over the span of the last 48 hours which is still ongoing.”
Other lawmakers weren’t so sure what was going on. Senator Chris Murphy said he suspected the administration may have rescinded the memo to evade judicial scrutiny of its funding freeze ― which Democrats and several legal scholars consider an infringement of congressional spending power as outlined in the Constitution.
“The crisis might have just deepened,” Murphy told HuffPost.
“My understanding is that they rescinded the memo but they didn’t rescind the intention,” Senator John Kennedy said.
Asked how the intent of the memo could remain without the memo itself, Kennedy said, “I don’t understand.”
Senator Mike Rounds seemed to think the White House had taken a hint from lawmakers’ criticism, which came from both Democratic and Republican members.
“I guess the best way to put it is: Advice and consent still kind of works once in a while.”