White House rescinds freeze on federal grants, loans after court order

The White House has issued a statement rescinding a memo that authorised a federal freeze on hundreds of billions of dollars in grants and loans.

The freeze was one of many of President Donald Trump’s orders targeted at ensuring money from the government’s coffers “aligns with US interests”.

The move sparked widespread panic among millions of people who rely on government aid.

On Tuesday, a judge temporarily halted the order, only hours after Trump signed it.

The judge paused the order until next Monday after a lawsuit was filed by a group of organisations representing grant recipients.

In a new letter on Wednesday, the White House said the order has been rescinded.

Karoline Leavitt, White House press secretary, said the federal freeze would still take effect.

She clarified that the halt was only necessary to obey the court’s temporary order.

“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo,” Leavitt wrote on X.

“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.”

Meanwhile, Marco Rubio, secretary of state, approved an “emergency humanitarian waiver” on the Emergency Plan for AIDS Relief (PEPFAR)—the world’s leading HIV initiative funded by the US.

The initiative supports over 20 million people living with HIV.

Trump’s ban on federal funding affected PEPFAR.

Many civil society organisations (CSOs) in Nigeria implementing programmes to fight the disease have expressed anxiety about how to continue the work.

In a statement on Wednesday, the United Nations Programme on HIV/AIDS (UNAIDS) said it welcomed the waiver, adding that it restores hope to people living with HIV.