Trump admin rescinds memo after executive order on funding causes confusion

Trump’s order Monday sparked widespread backlash from grassroots advocacy groups and constituents who rely on government programs that support public schools, access to low-income housing and healthcare, and more. 

The Trump administration has rescinded a memo that called to freeze federal grant, loan, and aid funding, reversing a move made earlier this week that caused instant backlash from Nevadans and other Americans who depend on programs funded through those grants like Medicaid, childcare, and other services. 

Several outlets reported Wednesday of a memo from acting director of the White House Office of Management and Budget (OMB) sent to federal agencies noting the order issued Monday by Trump — which instructed federal agencies to “temporarily pause all activities related to obligations or disbursement” of federal assistance — had been rescinded, but not the order itself. News of the order’s rescinding was first reported by The Washington Post. 

In a statement, White House Press Secretary Karoline Leavitt said the memo sent by OMB was rescinded in order to “end any confusion” after a court on Tuesday temporarily blocked the order from taking effect, and that rescinding the OMB memo would in essence end the legal challenge. Leavitt said on the social media site X Wednesday that Trump’s executive order remains in effect, and that rescinding the memo would allow the order to move forward. 

The initial memo sent out by OMB directed federal agencies to pause funding to support initiatives that promote diversity, equity, and inclusion, “woke gender ideology” (undefined, but likely any federal acknowledgement or support of transgender identity), federal climate change initiatives, and others. The OMB memo sought direct agencies to submit to the White House by Feb. 10 a report of affected programs, and claimed the pause was necessary to ensure federal programs are aligned with Trump’s policy objectives. 

“The Executive Orders issued by the President on funding reviews remain in full force and effect will be rigorously implemented by all agencies and departments,” Leavitt’s statement read, adding Trump will order more federal spending cuts in the coming weeks. “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending.” 

It’s not yet sure which, if any, what services or agencies would be impacted in Nevada.

Trump’s order Monday sparked widespread backlash from grassroots advocacy groups and constituents who rely on government programs that support public schools, access to low-income housing and healthcare, and more. Multiple state and local entities nationwide reported on Tuesday and Wednesday that they were having issues accessing funds under Medicaid and public housing assistance, though a White House spokesperson told The Post that individual benefits would not be affected. 

Neither Gov. Joe Lombardo’s office nor the Division of Welfare and Supportive Services (DWSS), an agency within the Nevada Department of Health and Human Services, responded to an inquiry of which of the state programs would be impacted by the order. Among the programs administered by DWSS are state Medicaid programs, supplemental nutrition assistance, childcare and support services, utility assistance, and others. 

Nevada Attorney General Aaron Ford on Tuesday joined officials from 22 other states and the District of Columbia in a legal challenge to the executive order, arguing that OMB has violated the Constitution and federal law called the Administrative Procedure Act by imposing a government-wide edict to stop spending, without regard for existing laws and regulations that govern each source of funding. 

Ford’s office had argued the funding freeze would have also immediately deprived local law enforcement agencies of funding, pause initiatives by the US Department of Justice to combat hate crimes and domestic violence, and halt relief efforts stemming from the recent California wildfires and hurricanes that swept through North and South Carolina late last year. 

“Presidents are elected leaders, and the rule of law bounds their actions,” Ford said in a news release issued Tuesday afternoon. “President Trump must respect this. When he does not, I’ll defeat him in court.”