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Politics

White Home aide says spending freeze isn’t being rescinded regardless of memo

By Miles Cooper February 1, 2025
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The White Home is claiming the Wednesday transfer by the Workplace of Administration and Price range (OMB) rescinding a controversial order that froze a large swath of federal monetary help just isn’t truly an finish to curbing authorities spending.

“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented,” White Home press secretary Karoline Leavitt mentioned on social media platform X.

Leavitt referred to the OMB memo issued Monday evening that directed federal companies to briefly pause “all activities related to obligation or disbursement of all Federal financial assistance” whereas the federal government conducts a evaluate to make sure spending aligns with President Trump’s agenda. 

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Trump on Wednesday afternoon blamed the media for the confusion over the Monday evening memo and mentioned his administration has already been capable of determine authorities waste, together with for coaching on range, fairness and inclusion (DEI) initiatives and for “authorized payments to foreign organizations.”

“To correct any confusion that the media has purposely and somehow, for whatever reason created — Social Security, Medicare and Medicaid have not been affected by any action we’re taking in any way, shape or form. We are merely looking at parts of the big bureaucracy where there has been tremendous waste and fraud and abuse,” Trump mentioned.

“I could stand here all day and tell you many things we have found. … These were the payments and types of payments affected by the temporary freeze,” he added.

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In an extended assertion, Leavitt outlined that Trump has focused by way of government orders prior to now week sure forms of spending and that Wednesday’s memo rescission means the White Home nonetheless plans to dam these funds. That features for applications like DEI initiatives within the federal authorities and the World Well being Group, from which Trump withdrew.

“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage. 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 mentioned in a press release.

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She additionally referred to as for an finish to authorized motion in opposition to the primary memo after U.S. District Decide Loren AliKhan briefly blocked Trump’s freeze on federal assist minutes earlier than it went into impact on Tuesday afternoon.

“This action 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 mentioned.

The press secretary on Tuesday was questioned on the legality of the freeze and mentioned it was “certainly within the confines of the law,” sustaining it’s inside the president’s energy to freeze the funding.

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She additionally emphasised that applications offering direct advantages to Individuals, resembling Medicare, Social Safety and the Supplemental Vitamin Help Program, weren’t impacted by the pause and that the main target is on making certain authorities spending aligns with Trump’s agenda.

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