WASHINGTON, D.C. — The White House confirmed on Wednesday that it has rescinded a memo issued by the Office of Management and Budget (OMB) that caused widespread confusion and disruption within federal agencies.
The original memo instructed agencies to pause issuing federal grants, leading to a state of stasis as departments scrambled for guidance.
The freeze came at a crucial time for many programs that depend on federal funding, from scientific research to social services for vulnerable communities.
Stakeholders, including state governments and non-profits, voiced concerns about the potential delays and disruptions the pause could cause to essential services.
The White House’s decision to rescind the memo brought relief to affected agencies and external stakeholders.
The reversal was seen as a move to restore normalcy and ensure that federal grant processing could continue without further interruption.
Despite the lack of additional context from the White House, the rescission allowed for the resumption of critical functions within federal departments.