The White House has officially revoked a controversial memo that ordered a freeze on federal grants and loans. The Office of Management and Budget (OMB) initially issued the memo, and it was set to take effect late Tuesday afternoon. However, a federal judge paused the freeze on Tuesday to allow time for arguments challenging its legality. By Wednesday, Acting OMB Director Matthew Vaeth formally rescinded the memo through a new directive identified as M-25-13.
The original memo aimed to halt federal funds temporarily, enabling agencies to review programs for compliance with President Donald Trump's agenda. This move led to widespread confusion about which programs might be affected. The suspected offline status of Medicaid reimbursement portals across all 50 states on Tuesday underscored the potential ramifications of the freeze.
The memo's controversial nature attracted challenges from various nonprofit groups and prompted judicial scrutiny. A federal judge began considering arguments against the legality of the freeze, which further complicated the situation. In light of these challenges, the White House decided to retract the memo.
Acting OMB Director Matthew Vaeth issued a new memo to rescind the previous directive. NBC News acquired this new memo from a source, which aims to address the confusion and provide clarity moving forward. Vaeth included specific instructions in the memo regarding the implementation of the President's Executive Orders.
"OMB Memorandum M-25-13 is rescinded. If you have any questions about implementing the President's Executive Orders, please contact your agency General Counsel." – Acting OMB Director Matthew Vaeth
The White House has yet to release comprehensive guidance following this decision. However, a senior administration official indicated that additional instructions would be forthcoming. Despite requests for comment, the Office of Management and Budget has yet to provide further details on the situation.