President Donald Trump's budget office is rescinding the wording, but not necessarily the substance, of its previous order for a blanket suspension of most federal aid, according a memo leaked to independent reporter Marisa Kabas.
The order issued on Monday was widely criticized by Democrats, NGO leaders and political activists as an unconstitutional power grab by the White House. A federal judge blocked the order Tuesday after the group Democracy Forward sued the Trump administration.
"OMB memorandum M-25-13 is rescinded. If you have questions about implementing the President's executive orders, please contact your agency General Counsel," reads the memo sent by Matthew Vaeth, acting director of the Office of Management and Budget. The news was confirmed by The Washington Post.
Less than an hour later, White House press secretary Karoline Leavitt clarified on X that the latest memo was "NOT a rescission of the federal funding freeze ... it is simply a rescission of the OMB memo" in order 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," she continued.
The stated objective of the grants suspension was to ensure that government agencies were complying with Trump's policy agenda to “to the extent permissible under applicable law," though critics of the order pointed out that almost everything in the original memo violated the constitutional principle that Congress decides how federal spending is disbursed, not the president.
Several groups, including Democracy Forward and a coalition of Democratic state attorneys general, challenged the grants suspension in court. On Tuesday evening, Judge Loren AliKhan in the District of Columbia issued a temporary restraining order on the OMB directive, stating that she would render a more permanent decision on Feb. 3.
The administration's reversal comes as the Senate prepares to vote on the confirmation of Trump's pick to lead OMB, Project 2025 architect Russ Vought.
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