Trump administration rescinds grant freeze memo that set off confusion and legal battles
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PBS NewsHour
4.1 • 1K Ratings
🗓️ 29 January 2025
⏱️ 3 minutes
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| 0:00.0 | Welcome to the NewsHour. After widespread confusion, the Trump administration today walked back some of its message about a funding freeze on trillions of dollars of federal grants and loans. |
| 0:11.9 | This afternoon, the White House set a memo from the Office of Management and Budget that outlined a temporary pause on many government-funded programs was rescinded. But White House Press |
| 0:22.4 | Secretary Caroline Levitt later said that would not stop the federal funding freeze tied to |
| 0:28.1 | President Trump's executive orders. Laura Barone Lopez has been following this back and forth, |
| 0:34.1 | and Laura, our viewers could be forgiven if they're confused by all of this. |
| 0:38.0 | Clear up what you can for us. |
| 0:39.6 | So that funding freeze that was revealed by the OMB memo sent nonprofits agencies, |
| 0:45.6 | state officials across the country into uncertainty and confusion, |
| 0:49.6 | because the White House initially had only specified that Medicare and Social Security would not be touched, |
| 0:54.6 | then later clarified no programs like Medicaid and SNAP won't be touched as well. And then today, |
| 1:00.3 | after 24 hours of chaos and facing two lawsuits, OMB said that they were rescinding that memo, |
| 1:06.6 | and White House Press Secretary said that this should effectively end the court case. |
| 1:11.7 | Other White House officials told us that this was a move essentially to get around the lawsuits. |
| 1:16.5 | But they said over and over again today that this does not halt that federal spending freeze. |
| 1:21.5 | And White House officials also said that the memo ultimately served its purpose. |
| 1:25.9 | So they're not backing off of this freeze at all, Jeff and Ana. Laura, you mentioned the White House thought that rescinding the memo ultimately served its purpose. So they're not backing off of this freeze at all, |
| 1:27.8 | Jeff and Anna. Laura, you mentioned the White House thought that rescinding the memo could contain |
| 1:31.1 | or stop the legal backlash. So does it? No, because a second federal judge today, Judge John McConnell, |
| 1:39.0 | plans to issue a restraining order against the funding freeze. And this was due to a lawsuit brought by attorneys general across a number of states. |
| 1:47.0 | And so according to reporters that were in the court today, Judge McConnell said that the OMB memo was hugely ambiguous, |
| 1:54.0 | and it is a, quote, distinction without a difference. |
| 1:57.0 | So now the White House is facing two restraining orders from two judges and two different |
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