Confusion persists over spending freeze and its effect on Medicaid
Despite memo rescinding the order, federal funding freeze remains in effect, White House says.
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Photo: Alex Wong/Getty Images
Confusion reportedly exists over a memo issued by the White House Office of Management and Budget rescinding President Trump's federal financial assistance spending freeze.
A White House aide told The Hill that the spending freeze isn't being rescinded despite the memo. The OMB's move Wednesday rescinding the order is not actually an end to curbing government spending, the report said. The memo has been rescinded to end any confusion created by a court's injunction, White House press secretary Karoline Leavitt said on social media platform X, according to the report.
A judge paused the freeze on federal grants and loans.
"The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments," White House press secretary Karoline Leavitt said, according to The Hill report. "This action should effectively end the court case and allow the government to focus on enforcing the President's orders on controlling federal spending."
The original memo, issued Monday by the president and Office of Management and Budget, froze funding for states, schools and organizations until February 1.
Medicaid and Medicare are exempt from the spending freeze, but those stipulations were questioned. Leavitt reportedly initially would not say whether Medicaid was exempted from the freeze, but the administration later clarified that it was.
On Wednesday, during a confirmation hearing for RFK Jr. for secretary of the Department of Health and Human Services, Senate Finance Committee Ranking Member Ron Wyden, D-Ore., indicated the freeze was to blame for the shutdown of the Medicaid portal on Tuesday.
The shutdown was temporary and unrelated to the spending freeze, according to Senate Finance Chairman Mike Crapo, R-Idaho.
Administration officials said the pause was necessary to review whether spending aligned with Trump's executive orders on issues like climate change and diversity, equity and inclusion programs, according to AP.
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