Trump Tries to Seize ‘the Power of the Purse’
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White House Rescinds Memo Freezing Federal Funds
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Above: US Pres. Donald Trump in the Oval Office on Jan. 23, 2025. Image copyright: Anna Moneymaker/Staff/Getty Images News via Getty Images
The Facts
The Trump administration's Office of Management and Budget (OMB) on Wednesday rescinded the memo that ordered a freeze on as much as $3T in federal grants and loans — a plan whose implementation and implications had caused confusion.
However, a White House spokesperson said Pres. Donald Trump's executive orders mandating funding review remained "in full force." A hearing is scheduled for Monday.
This comes after a federal judge Tuesday sided with nonprofit legal organization Democracy Forward by granting an administrative stay against the administration's plans. Attorneys general from 22 states and Washington, DC have also filed suit to stop the order.
The Spin
Republican narrative
The federal government must ensure taxpayer dollars are spent in alignment with the will of the American people and presidential priorities rather than funding woke programs that don't improve daily lives. A temporary pause allows for the necessary review of spending programs while maintaining essential services and benefits.
Democratic narrative
This unprecedented, and potentially illegal, freeze jeopardizes billions in critical community support and threatens national security. It's reckless that Trump thinks he can circumvent Congress' constitutional authority over spending. These funds have already been appropriated and must be distributed as such.
