The President of the United States, Donald Trump, has revoked an order that froze a series of federal grants, loans, and financial assistance, a dramatic reversal after days of uncertainty and anxiety that affected governments and nonprofit organizations.
The indication, issued by the White House's Office of Management and Budget, stated that the original memorandum was "revoked" and directed questions about its implementation to the agencies' and departments' lawyers, according to people familiar with the matter.
This change comes after a federal judge temporarily blocked the directive, and it followed bipartisan criticism from lawmakers who feared it could jeopardize anti-poverty initiatives, medical research, and other critical services. The revocation was first reported by the Washington Post.
"The OMB memorandum M-25-13 is hereby rescinded," stated this office in a new memorandum addressed to the "heads of departments and executive agencies."
The order to freeze aid and loans had created some chaos and panic in its implementation, even causing the collapse of the federal payment portals for the public health insurance program Medicaid. The Government had justified the measure by arguing the need to ensure that all funds comply with recent executive orders signed by Trump, which include restrictions on the rights of transgender individuals and cuts to diversity, equity, and inclusion (DEI) programs.
The pause ordered by Trump put the disbursement of billions of dollars at risk for various programs, including student loans, and could have a negative impact on health research, food assistance, and funding for organizations supporting veterans and people with disabilities.
Additionally, the measure could affect the aid intended for areas devastated by fires in California and floods in North Carolina, regions that Trump visited last week and where he promised federal support.
