Trump White House rescinds order freezing federal grants after widespread confusion

President-elect Donald Trump speaks to reporters before a New Year's Eve party at Mar-a-Lago, Tuesday, Dec. 31, 2024, in Palm Beach, Fla. (AP Photo/Evan Vucci)

Updated on Jan. 29, 2025, at 2:29 p.m.

 President Donald Trump’s budget office on Wednesday rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

The Monday evening memo from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington and left the White House scrambling to explain what would and wouldn’t be subject to a pause in funding.