After a White House attempt to halt federal funding that would have affected grant money for public radio, the Office of Management and Budget has rescinded its initial memo as a federal judge says he will move to block any future actions of the same nature.
The memo, issued by the OMB under Acting Director Matthew Vaeth, would have paused all activities related to the obligation or disbursement of federal financial assistance. The administration framed the move as part of a broader review to align federal spending with President Trump’s executive orders.
The policy immediately triggered lawsuits from nonprofit organizations and 22 state attorneys general, arguing that the freeze could cut funding for essential services, including disaster aid, law enforcement, and education. In response, US District Judge Loren AliKhan issued a temporary stay on the order through Monday as the court reviews its implications.
Despite the OMB officially rescinding the memo on Wednesday, White House Press Secretary Karoline Leavitt maintained that the administration still plans to implement a funding freeze by other means. Leavitt posted on X, “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. The President’s EO’s on federal funding remain in full force and effect and will be rigorously implemented.”
Amid the confusion, US District Judge John McConnell Jr. has indicated he will grant a restraining order halting the freeze entirely.
The OMB order immediately raised concerns within public broadcasting, an area that Republicans have historically wanted to defund.
In a statement to Radio Ink, the Corporation for Public Broadcasting said, “Two federal grant programs administered by CPB are impacted: the Next Generation Warning System grant funded through the Federal Emergency Management Agency and the Ready to Learn grant funded through the Department of Education. We are in contact with both agencies and are waiting to hear further information on how the White House budget office’s order will affect these grant programs. As soon as we have this information, we will share it with our grantees.”
While Judge McConnell’s anticipated restraining order could temporarily block any funding freeze, the White House’s insistence on maintaining the directive suggests further battles over grant dispersal are on the horizon.
