President Donald Trump has drastically withdrawn federal subsidies, according to a new Memo from the Budget Office.
The beautiful U-turn came after the original direction caused chaos because government agencies were not sure which of their programs were being hit.
Trump officials have claimed that financing should be put on hold while they Make sure that no government programs ‘wake up’ and that everyone is in accordance with executive orders that Trump signed last week that the dei agenda of the Biden administration abolished.
But the order, issued on Tuesday, led to Medicaid portals that were temporarily closed and auxiliary groups warned that lives were in danger, because critical financing for vaccines and other health problems were frozen.
On Wednesday, Matthew Vaeth, acting director of the White House and Budget, sent a new order to government officials stating that the first was ‘withdrawn’.
However, there was more confusion, because, a little later, the press secretary of the White House, Karoline Leavitt, stated that the financing was not dropped and that subsidies were still assessed.
The first order had told the federal agencies to “temporarily pause all activities with regard to obligations or payment of all federal financial aid.”
It paused federal subsidies, loans and other financial assistance that trillions could have had in financing.
Twenty -two states and Washington, DC, complained, immediately challenged the order before the court and a district juditor set it near it late on Tuesday evening.
Worn Said: ‘This is not freezing of federal financing freezing. It’s just a dissolution of the Omb Memo. Why? To put an end to all the confusion caused by the order of the court.
“The executive orders of the president on federal financing remain fully in force and are implemented rigorously.”
President Donald Trump has withdrawn his order by freezing federal funds
On Tuesday, Leavitt had tried to clear questions about how the financing would work and who was affected.
“This is not a general break about federal assistance and subsidy programs of the Trump administration,” she said.
Trump officials argued that critical financing pipelines such as Medicare, Social Security and Veteran Care would not be influenced.
They also said that it was a temporary measure when financing flows were assessed.
But after several states reported that the Medicaid portal was down, the OMB stated on Tuesday afternoon that “mandatory programs such as Medicaid and Snap (food vouchers) will continue without break.”
The original order wanted civil servants to revise more than 2,000 programs and required federal agencies to document whether each program has financing with regard to immigrants without papers, climate policy, diversity programs or abortion.
The agencies had to give their answers to the OMB in less than two weeks.
![Trump withdraws federal financing freezing in dramatic U-bend after discontinuation of expenses caused caused 6 Democrats shot the spending freezing on Capitol Hill on Tuesday before a judge stopped it temporarily](https://whatsnew2day.com/wp-content/uploads/2025/01/Trump-withdraws-federal-financing-freezing-in-dramatic-U-bend-after-discontinuation.jpeg)
Democrats shot the spending freezing on Capitol Hill on Tuesday before a judge stopped it temporarily
Democrats and even some Republicans criticized the move. Republicans said the White House had to explain better what was hit.
Sen. Patty Murray from Washington and Rep. Rosa Delauro from Connecticut – two top democrats in the congress – wrote to the White House and sketched their ‘extreme alarm’ with the idea of a broad break in subsidies.
“The scope of what you order is breathtaking, unprecedented and will have devastating consequences throughout the country,” the legislators wrote.
“We are writing today to encourage you in the strongest possible conditions to maintain the law and the Constitution and to ensure that all federal resources are delivered in accordance with the law.”
Alexandria Ocasio-Cortez, the Democratic Congressman, added: “This is the first major loss of Trump. If we fight, we win. ‘
(Tagstotranslate) Dailymail