Trump Admin Backtracks on Federal Funding Freeze After Massive Public and Legal Blowback

Washington, D.C. – Social media erupted after the Trump administration quietly rescinded its order freezing all federal grants and loans, following a federal judge’s decision to temporarily block the move earlier this week. On Wednesday, the White House released a brief statement announcing the reversal, stating simply: “OMB Memorandum M-25-13 is rescinded.”

The terse memo, issued by the Office of Management and Budget (OMB), marked an abrupt policy shift that left many questioning the administration’s handling of the freeze. The decision came after a coalition of Democratic attorneys general from 22 states and the District of Columbia sued the federal government, arguing that the freeze would cut off vital funding for critical services.

New Jersey Attorney General Matthew Platkin told CNN on Wednesday that the order would have devastated programs benefiting seniors’ healthcare, children’s education, and law enforcement agencies. “I got a notice yesterday that they were freezing all funding for drug cartel trafficking enforcement. He defunded the police!” Platkin said, highlighting the unintended consequences of the sweeping freeze.

Trump’s initial executive order, issued on Tuesday, caused widespread confusion, with state agencies and nonprofits scrambling to determine its impact. However, rather than addressing the backlash publicly, the administration reversed course the next day without any formal statement to the press. On social media, the decision was met with a mixture of relief and sharp criticism.

Rep. Alexandria Ocasio-Cortez (D-NY) declared it “Trump’s first major loss.” She continued, “When we fight, we win. We may not have majorities in the House and the Senate, but we DO have the power to loudly educate and mobilize against the mass looting the Trump admin is attempting against our veterans, healthcare, education, and more.”

CNN commentator Bakari Sellers mocked the administration’s handling of the situation, tweeting: “They govern like this is SIMS. Ineptitude.” The anti-Trump Republican group The Lincoln Project celebrated the reversal, writing: “Trump backed down. This is a win. It’s what happens when we fight back.”

Journalists also weighed in on the chaotic series of events. Politico’s Sam Stein summarized it this way: “Trump OMB puts out 2-page memo freezing all grants, Chaos, panic ensues. OMB puts out a 1.5-page Q&A trying to clarify, More confusion. Congressional Republicans defend it all after Dems go off. WH blames media for confusion. OMB puts out one-line memo rescinding freeze.”

Political analyst Rachel Bitecofer called it “the most incompetent thing any administration has ever done to itself.” Pollster Frank Luntz summed up the moment with a tweet: “The White House has reversed the federal funding freeze that it had ordered 48 hours ago. Whew, what a year.”

With the freeze lifted, questions remain about the administration’s decision-making process and whether more abrupt policy reversals are on the horizon.