White House cancels spending freeze after court blocks order


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The White House has withdrawn a comprehensive memo that had imposed restrictions on various federal disbursements, following a judicial intervention that temporarily suspended the directive on Tuesday.

Acting White House budget director Matthew Vaeth issued a concise new directive to departments and agencies, stating “OMB Memorandum M-25-13 is rescinded,” as initially reported by NBC News.

The original memorandum had instructed government agencies to implement a temporary halt on grants, loans, and federal financial assistance programs that fell under the scope of Presidential Executive Orders, according to information from the Office of Management and Budget.

The directive’s implementation led to widespread uncertainty regarding which specific programs were affected. This confusion prompted White House officials to provide clarification that major benefit programs, specifically Social Security and Medicare, were not included in the freeze.

As this situation continues to unfold, additional updates are anticipated.