The Trump administration today rescinded its memo directing federal agencies to pause distribution of grants and loans, with the reversal coming after a federal judge temporarily blocked implementation of the freeze.
The Office of Management and Budget on Monday issued a memo directing federal agencies to suspend funding until each completed “a comprehensive analysis of all of their federal financial assistance programs to identify programs, projects and activities that may be implicated by any of the president’s executive orders.” The order caused widespread confusion about which funding sources were paused, and a federal judge in Washington, D.C., this week issued an administrative stay against the freeze after several groups challenged its constitutionally.
The OMB today issued a new memo rescinding the earlier memo. However, in a post on X, White House Press Secretary Karoline Leavitt said the administration rescinded the memo to avoid confusion about the court order, but suggested the freeze was not rescinded. “The president’s [executive orders] on federal funding remain in full force and effect, and will be rigorously implemented,” she said.
The American Bankers Association is closely tracking these developments and will launch a resource page analyzing the executive orders that affect banks in the coming days to provide immediate and updated feedback to members. The following FAQ documents on other executive orders are currently available to ABA members:
Additional Resources
The law firm Sullivan & Cromwell has created a tracker on the business effects of the administration’s executive orders.
