White House rescinds controversial spending pause memo

The White House Office of Management and Budget has rescinded a controversial memo that ordered all federal agencies to halt and review spending on grants, loans or other forms of financial assistance following a swirl of confusion about which programs were included or exempt.

The rescinded memo, “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance,” directed federal agencies to comb their budgets to root out "Marxist equity, transgenderism and green new deal social engineering policies."

The Pentagon, meanwhile, released a statement from an unnamed senior defense official last night saying the department was reviewing the OMB memo, noting that some contracts or activities “may be paused” if they were misaligned with the White House’s guidance.

It is unclear how DOD will proceed now that the memo has been rescinded and the Pentagon did not immediately respond to a request for comment.

Senate Appropriations Committee Chairwoman Susan Collins (R-ME) released a statement criticizing the White House.

“I am pleased that OMB is rescinding the memo imposing sweeping pauses in federal programs,” she said. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”

The original memo has been challenged in court, with a federal judge issuing a stay on the guidance.

However, White House Press Secretary Karoline Leavitt said on X that the federal funding freeze would continue as directed, though the memo directing it was being rescinded.

"This is NOT a rescission of the federal funding freeze,” she wrote. “It is simply a rescission of the OMB memo. Why? 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.”