The White House remains committed to freezing federal grants and loans aimed at ‘woke’ programs, Fox News has learned, despite the administration’s move to rescind the original Office of Management and Budget memo — effectively ending the legal battle and any ‘confusion’ for recipients.
A federal judge on Tuesday paused the Trump administration’s Office of Management and Budget (OMB) memo, which aimed to freeze funding to various federal programs.
On Wednesday, the Trump administration rescinded the original memo.
‘In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,’ White House press secretary Karoline Leavitt told Fox News on Wednesday. ‘The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments.’
Leavitt told Fox News that rescinding the memo ‘should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending.’
‘In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding,’ Leavitt said.
The memo, sent to federal agencies on Monday, issued a pause on all federal grants and loans aiming to eradicate ‘wokeness’ and the ‘weaponization of government’ to improve government efficiency.
‘Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,’ the memo, obtained by Fox Digital, reads.
The pause was set to take effect at 5 p.m. Eastern Standard Time on Tuesday.
Democrats had criticized the Trump administration’s freeze of federal funds, arguing that President Trump is circumventing Congress and withholding congressionally appropriated funds, violating the Impoundment Control Act.
U.S. District Judge Loren AliKhan for the District of Columbia, appointed by former President Joe Biden, imposed an administrative stay on Tuesday afternoon, pausing the Trump administration’s action.
The administrative stay pauses the freeze until Monday.
The White House stressed that despite the memo being rescinded, if money coming out of federal agencies is at odds with the president’s executive orders, for example, funding for Diversity, Equity, and Inclusion programs, those funds will still be frozen.
But programs including Social Security benefits, Medicare, food stamps, welfare benefits and other assistance going directly to individuals will not be impacted under the pause, according to Leavitt.
Leavitt, during the White House press briefing on Tuesday, described the pause as ‘temporary,’ and noted that the Trump administration has executed other freezes throughout the government, including a regulatory and hiring pause.
‘It’s incumbent upon this administration to make sure, again, that every penny is being accounted for honestly,’ Leavitt said.
Additionally, Leavitt said that Trump’s newly created Department of Government Efficiency that aims to eliminate government spending and waste identified $37 million that was about to go to the World Health Organization, along with $50 million to ‘fund condoms in Gaza.’
‘That is a preposterous waste of money,’ Leavitt said.