Trump Administration rescinds Federal Grant Freeze memo

The Trump administration has rescinded a memo that temporarily froze federal grants and loans.

The memo, issued by the Office of Management and Budget on Jan. 27, Eastern Standard Time, paused spending to review whether it aligned with Trump’s executive orders on climate change and diversity, equity, and inclusion programs.

According to the Associated Press, The White House confirmed Wednesday, Jan. 28, that the Office of Management and Budget rescinded the memo in a brief notice sent to federal agencies and departments. However, officials emphasized that Trump’s executive orders restricting federal spending on diversity, equity, inclusion, and climate initiatives remain in effect.

Administration officials defended the initial pause on grants and loans, saying it was necessary to review spending compliance with Trump’s recent executive actions. Agencies were instructed to respond by Feb. 7 to a series of yes-or-no questions about each program, including whether they promote gender ideology or support abortion in any way.

“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,” White House press secretary Karoline Leavitt said on X, formerly Twitter. She blamed the confusion on the courts and news outlets, saying, “This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending.”

The Leon Guerrero-Tenorio administration welcomed the reversal, calling it a move that provides “much-needed clarity and stability for Guam and other U.S. territories that rely on federal funding for critical programs and services,” in a statement. The administration stated it will continue working closely with federal partners to monitor any potential developments, "provide updates as necessary... and advocate for the funding Guam deserves." mbj