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White House Rescinds Order That Froze Federal Aid And Stoked Confusion


The White House rescinded an order that froze federal grants, loans and other financial assistance, generating widespread confusion among governors, state agencies and non profits over the future of their financial support. A federal judge had already issued an injunction to temporarily block the order, but the Office of Management and Budget today issued a […]

They quickly pointed to the impact that the order had health care, research and schools, while characterizing the effort as an illegal power grab to usurp Congress’ control of the federal purse strings. In a statement, Leavitt said, “In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage.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.”

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