In a move that sparked confusion among all of Washington and beyond, President Donald Trump ordered a temporary freeze on trillions of dollars in federal spending for grants and loans. The aim of this executive order was to assess that the government’s spending allocations were in line with his administration’s priorities. This freeze was worrisome for the millions of people who rely on student loans, grants, Medicare, and other government-funded aid programs. However, roughly 45 hours after this order was issued, it was rescinded.
On the night of January 27, the U.S. Office of Management and Budget (OMB) issued a memorandum (M-25-13)–signed by acting director Matthew J. Vaeth– to all heads of executive departments and agencies. This memorandum ordered federal agencies to not only halt all spending but also submit to the OMB “detailed information on any programs, projects or activities subject to this pause” no later than February 10, 2025. It ordered that all disbursement of funds and issuance of awards should stop until the OMB “[had] reviewed and provided guidance to…[agencies] with respect to the information submitted.” This was not meant to affect “any program that provides direct benefits to Americans,” meaning funds for Pell Grants and similar programs were not to be affected.
When asked whether or not Medicaid was included in the freeze, White House Press Secretary Karoline Leavitt couldn’t give an answer. Those who tried to access the Medicaid portal on January 29 were unable to do so, but the White House assured them that benefits would remain unaffected and that any issues would not be related to the freeze.
The memorandum was rescinded on Wednesday, with the OMB releasing a 2-sentence that reads, “OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel,” according to CNN. This happened after a federal judge ordered a temporary hold on part of the freeze. This move angered Congress, as those who would have enforced the order were caught by surprise. Senate Minority Chuck Schumer claimed that the outrage of Americans put political pressure on the White House, prompting the response from Trump’s committee.
It is unknown how the freeze will affect federally funded programs. On February 3, U.S. District Judge Loren AliKhan issued restraining orders on the parts of the freeze that are still in effect. Mass confusion still continues as it is unclear what will happen to the programs that are still frozen, as their cancellations could negatively affect the citizens who benefit from them. The White House has not issued new statements, and government agencies remain uncertain about how to proceed. Legal challenges are mounting as advocacy groups and state officials push for clarity on which programs will be restored. Meanwhile, millions of Americans who rely on federal assistance are left in limbo, awaiting further guidance from the administration.
