Trump White House Sparks Chaos with Confusing Reversal on Federal Funding Freeze
Donald Trump in New York City on Nov. 6, 2023. Adam Gray / AFP via Getty Images file
Washington, D.C. – The Trump administration sowed confusion once again on Wednesday when it appeared to rescind—then immediately reaffirm—its controversial executive order freezing federal grants and loans.
The Office of Management and Budget (OMB) initially released a brief statement that seemed to roll back the freeze, stating in a single line: “OMB Memorandum M-25-13 is rescinded.” However, just hours later, White House spokeswoman Karoline Leavitt issued a clarification insisting that the funding freeze was still in effect.
“This is NOT a rescission of the federal funding freeze,” Leavitt wrote in a post on X. “It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
The mixed messaging from the administration sparked immediate backlash and further uncertainty, particularly among lawmakers. “More chaos and more confusion from the Trump administration,” wrote Sen. Ruben Gallego (D-AZ) on BlueSky. “They’re doubling down on cutting programs for our children, elderly, and veterans. We won’t let them.”
Sen. Tina Smith (D-MN) reacted with frustration, posting: “Thanks. That clarifies nothing.” The initial executive order, issued by President Donald Trump on Tuesday, had already triggered widespread disruption. Medicaid portals across all 50 states temporarily shut down as agencies scrambled to determine how the freeze would impact critical funding streams.
The chaos led to immediate legal challenges, culminating in a federal judge issuing an injunction to halt the policy until at least next week. Despite the court order, the administration’s latest statements suggest it still intends to enforce the funding freeze through alternative measures, raising concerns about ongoing instability for state agencies, nonprofits, and other entities reliant on federal grants.
The uncertainty surrounding the policy has fueled criticism of the White House’s decision-making process, with opponents arguing that the administration’s haphazard approach has only exacerbated the confusion and disruption caused by the order.
With legal battles looming and federal agencies in limbo, it remains unclear how—or if—the administration will proceed with its funding freeze in the coming days. For now, the only certainty is continued uncertainty.
