WASHINGTON, D.C. — The Trump administration on Wednesday rescinded an order that had temporarily frozen a broad array of federal financial assistance, following sharp criticism from lawmakers and disruptions to government programs. The reversal came after a federal judge issued a temporary halt to the directive and congressional Republicans voiced concern over its sweeping impact.
The freeze, issued Monday evening by the White House, directed federal agencies to pause all disbursements of financial aid, including foreign assistance, funding for nongovernmental organizations, diversity and inclusion initiatives, gender identity programs, and environmental policies linked to the Green New Deal. The administration framed the move as a temporary review to align spending with its policy agenda.
The directive, however, led to immediate confusion across government agencies and nonprofits, many of which were uncertain whether their funding streams would be affected. Although payments for Social Security, Medicare, and direct individual benefits were exempt, the broad language of the order left many organizations struggling to interpret its reach. Medicaid’s web portal was temporarily shut down, delaying access to critical healthcare resources, and nonprofits assisting vulnerable populations reported difficulties accessing federal funds.
By Tuesday evening, a federal district judge intervened, issuing a temporary block on the order as concerns mounted over its legal and practical ramifications. The following day, the Office of Management and Budget withdrew the directive, bringing an end to a freeze that had created uncertainty across multiple sectors.
The decision to rescind the order followed pressure from congressional Republicans, who had been fielding concerns from local leaders and organizations reliant on federal aid. While administration officials had attempted to clarify aspects of the order, confusion persisted, prompting calls for a swift resolution.
The reversal marked the latest instance of a policy rollout by the administration that triggered immediate disruption before being walked back under pressure.