President Donald Trump’s Office of Management and Budget on Wednesday revoked an order freezing federal grants.
A White House official announced the decision to pull back a proposed spending freeze that threatened to disrupt hundreds of billions of dollars in aid to U.S. programs, Reuters reported.
The decision was announced in a copy of a new memo, obtained by The Washington Post, after the administration’s move earlier his week to stop spending resulted in a backlash.
Acting OMB acting Director Matthew J. Vaeth used the memo to tell federal agencies that the department’s memorandum M-25-13 “is rescinded,” the Post reported.
In a memo Monday, Vaeth said funding for federal grants and loans would be put on hold while the Trump administration reviews them to ensure the recipients are aligned with Trump’s priorities, including executive orders he signed last week ending diversity, equity and inclusion programs.
OMB oversees the federal budget.
The first major domestic policy reversal of the Republican president’s new term came after one federal judge had temporarily blocked the freeze and before another judge was due to hear a separate legal challenge. The proposal had thrown the federal government into chaos and disrupted payments to medical and child-care providers.
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