Washington: The administration of President Donald Trump appeared to retreat from its proposed freeze on hundreds of billions of dollars in federal aid on Wednesday following mounting legal challenges and strong opposition. However, officials maintained their intent to cut funding for programs that Trump opposes.
In a swift policy reversal, the White House budget office informed federal agencies that it was rescinding a directive issued late Monday that had halted grant and loan payments. The reversal came just ahead of a federal court hearing on a lawsuit filed by Democratic state attorneys general seeking to block the freeze. A White House official indicated that the decision aimed to preempt legal battles.
Despite the policy shift, U.S. District Judge John McConnell proceeded with the hearing. Speaking from Providence, Rhode Island, McConnell, an appointee of former President Barack Obama, suggested he was inclined to issue a temporary injunction against the administration’s move but did not immediately do so.
In a reversal to a policy unveiled with little explanation, the White House budget office told federal agencies it was rescinding a memo that had ordered the pause in grant and loan payments https://t.co/qVEEpHQ4F5 pic.twitter.com/tZ5CkH4vZe
— Reuters (@Reuters) January 30, 2025
During the virtual hearing, McConnell noted that the states had presented compelling arguments regarding the “inappropriate effects” of the now-revoked funding freeze. He emphasized that the reversal did not eliminate concerns stemming from the administration’s actions and the statements made by Trump’s press secretary.
The administration had defended the aid suspension as a necessary review process to prevent funding programs that Trump has long opposed, including diversity initiatives, green energy projects, and foreign aid efforts.
“We are merely looking at big parts of the bureaucracy where there has been waste and abuse,” Trump stated at the White House.
The policy had already been temporarily blocked by a separate federal judge in Washington, who was overseeing a related legal challenge from advocacy groups.
Reversal Marks Another Abrupt Policy Shift
The aid freeze reversal is the latest instance of Trump’s unconventional and often unpredictable governing approach. Since taking office on January 20, he has moved to cut foreign aid, granted pardons to supporters convicted for attacking U.S. Capitol police, and pursued workforce reductions within the civil service.
Immigration Crackdown and Guantanamo Expansion
At the White House, Trump announced plans to prepare 30,000 beds at the Guantanamo Bay military prison in Cuba to house migrants detained under his administration’s immigration crackdown.
In addition to the expanded detention policy, the administration stated that it would revoke student visas for pro-Palestinian demonstrators, signaling an unprecedented move to target individuals legally residing in the U.S. based on their political views. Trump has remained a steadfast supporter of Israel amid its conflict with Hamas.
Republican Support Amid Legal and Political Battles
While Democrats in Congress have accused Trump of repeatedly violating the law since returning to office, his Republican allies have largely remained supportive.
The Republican-controlled Senate has confirmed all of Trump’s cabinet nominees so far, including Defense Secretary Pete Hegseth. Hegseth narrowly secured confirmation in a 51-50 vote after facing allegations of sexual assault and alcohol abuse. He has since aggressively pursued Trump’s policy agenda, including banning transgender troops and eliminating diversity programs within the military.
On Wednesday, Hegseth revoked security protections for Mark Milley, the former Chairman of the Joint Chiefs of Staff, who had served under Trump’s first term before becoming an outspoken critic.
Trump’s nominee for health secretary, Robert F. Kennedy Jr., faced scrutiny during his confirmation hearing over his controversial anti-vaccine views. However, the hearing saw little pushback from Republican lawmakers, most of whom appeared inclined to support his nomination.
Howard Lutnick, Trump’s choice for Commerce Secretary, also received a favorable reception from lawmakers as he echoed the president’s endorsement of tariffs and criticism of Canada’s trade policies.
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GOP Lawmakers Defend Spending Freeze Attempt
Republican lawmakers remained unfazed by Trump’s attempt to halt federal aid payments, despite concerns that the move could undermine Congress’ authority over the $6.75 trillion federal budget.
“I, for one, am glad to have a president in the White House who is delivering on his promise to get our fiscal house in order,” said House Republican Whip Tom Emmer at a party retreat in Miami.
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Despite the short-lived freeze, some disruptions to aid programs persisted. According to an association of state agencies, medical payments resumed on Wednesday, but housing authority payments remained stalled.
Senior lawmakers from both parties overseeing federal budgetary matters welcomed the administration’s decision to reverse course.
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Senate Appropriations Committee Chair Susan Collins, a Republican, stated that while it was not unusual for new administrations to review federal programs, “this memo was overreaching and created unnecessary confusion and consternation.”
Senator Patty Murray, a Democrat, criticized the administration’s handling of the situation, saying that Trump’s actions had “through a combination of sheer incompetence, cruel intentions, and a willful disregard of the law, caused real harm and chaos for millions over the span of the last 48 hours.”
