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National Review
National Review
29 Jan 2025
Brittany Bernstein


NextImg:Trump Administration Abruptly Rescinds Freeze on Federal Grants, Loans

President Trump rescinded a planned freeze on most federal grants and loans on Wednesday, one day after the measure was temporarily paused by a federal district judge.

U.S. District judge Loren L. AliKhan issued an administrative stay on the measure on Tuesday night, moments before it was supposed to go into effect. The order had blocked the freeze from going into effect until at least Monday after a network of nonprofit groups filed a legal challenge against the measure.

Office of Management and Budget (OMB) director Matthew Vaeth previously ordered agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance” and “identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements” on Monday evening.

White House press secretary Karoline Leavitt explained on Tuesday afternoon that the directive was the Trump administration’s effort to be “good stewards for tax dollars.”

“I think this is a very reasonable measure,” she said, adding that the freeze would allow the government time to cut back diversity, equity, and inclusion initiatives that Trump opposes. Programs “that [provide] direct benefits to individuals,” including the Supplemental Nutrition Assistance Program (SNAP), and Medicare and Social Security would not be affected, Leavitt added.

The act is “not a blanket pause on federal assistance,” Leavitt clarified.

“What does this pause mean? It means no more funding for illegal DEI programs,” she said. “It means no more funding for the Green New Scam that has cost American taxpayers tens of billions of dollars. It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies, no more funding for Green New Deal social engineering policies.”