White House rescinds federal funding freeze

The Trump White House on Wednesday rescinded its order freezing the disbursement of all federal grants and loans, which had created widespread confusion across Washington and in states.

A new memo from the Office Management and Budget, distributed to all federal agencies, said the original order “is rescinded.” It directs agency heads to contact their department’s lawyers if they have any questions about the rescission.

The move comes a day after a federal judge temporarily paused the order amid protests from non-profit advocacy groups and lawmakers. The original order was issued by OMB on Monday night.