The White House on Wednesday rescinded former President Donald Trump’s spending freeze, a move aimed at ending litigation and clarifying federal policy, though it maintains a review of government spending to ensure compliance with executive orders issued by the president.
The decision follows a temporary stay issued by a federal judge in response to a lawsuit from a progressive advocacy group and four nonprofit organizations. Additionally, a second legal challenge from 22 states and the District of Columbia was set to be heard later in the day.
“In light of the injunction, [the Office of Management and Budget] has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House press secretary Karoline Leavitt stated.
She added that despite the rescission, the executive orders on federal spending remain in full force and that the administration will continue efforts to eliminate wasteful government funding.
Controversial Directive and Legal Fallout
The now-rescinded directive ordered federal agencies to pause all funding, particularly in areas related to:
- Foreign aid and nongovernmental organizations
- Diversity, equity, and inclusion (DEI) programs
- Climate change initiatives tied to the Green New Deal
- Gender-related policies
The sweeping directive triggered multiple lawsuits, and its withdrawal does not necessarily end the ongoing litigation. The Trump administration filed a motion Wednesday afternoon arguing that the case was now moot, given the policy reversal.
