Republican senators reportedly “hit the ceiling” over the White House budget office issuing a memo freezing federal loans and grants.
The Office of Management and Budget (OMB) rescinded the memo after sparking confusion and prompting objections from some GOP lawmakers who also did not want to appear to be criticizing President Donald Trump, according to The Hill.
“Republicans were starting to hit the ceiling, because the state governments, people in our states were coming to us saying, ‘Wait, wait, wait, wait. What does this mean? Does it mean we’re going to lose funding for X, Y, Z?’” said a Republican senator who requested anonymity.
“As drafted the initial memo sounded so broad, and it sounded like a new order. It sounded like it was a new freeze, which was super confusing,” the senator said.
They’ve rescinded the OMB memo freezing government spending. pic.twitter.com/Oxt9FwuL5o
— Sam Stein (@samstein) January 29, 2025
According to the White House, the initial OMB guidance issued by acting OMB Director Matthew Vaeth “establishes a process for agencies to work with OMB to determine quickly whether any program is inconsistent with the President’s Executive Orders. A pause could be as short as a day. In fact, OMB has worked with agencies and has already approved many programs to continue even before the pause has gone into effect.”
But the memo sparked fears and confusion before being rescinded.
Another GOP senator who requested anonymity told The Hill that the memo was “shocking” and bewildered many in the Senate Republican Conference.
“We were all hyperventilating because of the pause on federal funds and programs,” the lawmaker added.
“I made clear that I thought it was too sweeping, that it was causing a lot of confusion and consternation in my state, particularly for nonprofit organizations, and I’m glad that it’s apparently been rescinded,” Senate Appropriations Committee Chair Susan Collins (R-Maine) said on Wednesday.
“I met first thing this morning with the Head Start folks from Alaska and of course, Head Start was to be one of those not touched [by the funding freeze] but yesterday no one was able to access the portal,” said Sen. Lisa Murkowski (R-Alaska). “It’s what everybody was talking about yesterday.”
“I think the lack of information is what captures people, that they would pick up the phone and call or email us. They don’t know what it means. Once they get the chance to ask the questions, the level of anxiety is significantly diminished,” Sen. Jerry Moran (R-Kan.) said.
“Who we mostly heard from were communities, cities who had a grant. Trying to figure out, ‘What does this mean to the grant?’ Our answer is, ‘We’re trying to find that out,’” he added.
This is NOT a rescission of the federal funding freeze.
It is simply a rescission of the OMB memo.
Why? To end any confusion created by the court’s injunction.
The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.
— Karoline Leavitt (@PressSec) January 29, 2025
One Republican senator noted that there was “quite a bit of consternation within the administration,” adding that “Sean Duffy, who just got confirmed, his staff just had a heart attack when they saw the memo. They weren’t consulted on it at all. They knew nothing about it.”
White House press secretary Karoline Leavitt explained Wednesday that parts of the OMB memo from Monday remain “in full force and effect.”
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage. The Executive Orders issued by the president on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments,” she said in a statement.
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