WASHINGTON — President Donald Trump’s budget office on Wednesday rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to two people familiar with the matter.
The Monday evening order from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington and left the White House scrambling to explain what would and wouldn’t be subject to a pause in funding.
The people, speaking on the condition of anonymity to discuss internal guidance, confirmed that the OMB pulled the order Wednesday in a two sentence notice to agencies and departments.
Democratic critics of the order moved swiftly to celebrate the action.
“This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country—real people made a difference by speaking out,” said Sen. Patty Murray, D-Wash. “Still, the Trump administration—through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law—caused real harm and chaos for millions over the span of the last 48 hours which is still ongoing.”