Zinger Key Points
- The federal spending pause is to ensure that tax dollars are not spent on programs Trump doesn't support like, said the press secretary.
- Americans should not be worried said the press secretary as Medicare, Medicaid, welfare benefits, etc, are not impacted by the memo.
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The White House Office of Management and Budget on Wednesday rescinded a Monday memo that had ordered a freeze on federal assistance for all federal grants and loans, which led to a period of anxiety and confusion as hundreds of thousands questioned which programs would be affected.
Then on Wednesday, a two-line memo issued by acting director of the Office of Management and Budget Matthew Vaeth stated the original directive was rescinded. This follows a Tuesday afternoon lawsuit filed by Democracy Forward that blocked the Monday memo. Another two dozen or so state attorneys general also filed their own lawsuits against the administration on Tuesday, noted the Washington Post.
Vaeth's Wednesday memo announcing the pause of federal funding cuts somewhat unhelpfully directs those with questions about implementing President Donald Trump‘s executive orders to contact the general counsels at their agencies.
How Many Memos? White House Press Secretary Explains, Sort Of
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House press secretary Karoline Leavitt said 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. This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending.”
Leavitt added that Trump will take more action in the coming weeks and months to address federal funding.
So, Now What?
In a post on X showing Leavitt speaking to a group of reporters, she confirmed that the Trump administration's efforts to block spending only applies to programs that it opposes. That part of the funding freeze will remain in effect.
"This is a temporary pause on federal funding to ensure that tax dollars are not funding things that this president has signed out of law…The Green New Deal.. DEI… etc."
Leavitt said Americans should be happy with Trump and not worried by the memo because Social Security, Medicare, Medicaid, welfare benefits and food stamps will not be impacted.
But that wasn’t necessarily true.
On Tuesday, Medicaid portals were reportedly down in all 50 states after the Trump administration paused the federal grant and loan programs.
U.S. Sen. Ron Wyden, D-Oregon, posted on social media that his staff confirmed that Medicaid portals are down in all 50 states.
It was only after legal challenges were filed against the funding freeze that Medicaid programs were able to resume accessing their portals, CBS News reported.
Congresswoman Alexandria Ocasio-Cortez clapped back at Leavitt’s statement: “This is why you should not trust a word this White House says.”
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