Trump Administration Reverses Course on Federal Grant Freeze Amid Backlash

In a sudden reversal, the Trump White House has rescinded its controversial order freezing federal grants, following intense backlash from lawmakers, state officials, and advocacy groups. The decision, revealed in a memo obtained by The Washington Post, comes just days after the administration had ordered a halt to federal financial assistance, throwing vital programs into chaos. The abrupt move had jeopardized funding for schools, public housing, Medicaid, and other critical services, prompting lawsuits and emergency legal action.

The original directive, issued Monday by the White House Office of Management and Budget (OMB) under acting director Matthew J. Vaeth, ordered agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.” The order’s sweeping impact sparked immediate alarm across the country, with reports of Medicaid funds being inaccessible and public housing authorities locked out of their funding portals. Despite assurances from White House spokeswoman Karoline Leavitt that individual assistance programs would remain unaffected, the freeze created widespread uncertainty.

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