NEW YORK – In a move that has created even more confusion for nonprofit organizations and states, among others, President Donald Trump’s budget office has rescinded a memo that ordered a temporary pause on federal grant, loan and other financial assistance programs.
The memo, issued Jan. 27 by the Office of Management and Budget, had federal agencies temporarily pause their spending to review whether or not it aligned with Trump’s executive orders on issues like immigration, diversity, equity and inclusion programs, climate change, and gender.
With trillions of dollars on the line, the memo was challenged in court, and on Jan. 28 a federal district judge in Washington, D.C., temporarily blocked the effort. Then, on Jan. 29, the Office of Management and Budget issued a brief memo that the original was “rescinded.”
White House Press Secretary Karoline Leavitt then clarified that the funding freeze would continue.
“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo,” Leavitt said Jan. 29. “Why? To end any confusion created by the court’s injunction. The President’s [executive orders] on federal funding remain in full force and effect, and will be rigorously implemented.”
Leavitt also clarified that federal assistance that goes directly to individuals – social security benefits, Medicare benefits, food stamps, welfare benefits, among others, would not be affected.
Catholic Charities USA, which spoke out against the original memo, declined a request for comment on the events of Jan. 29, instead referring Crux to its original statement. The United States Conference of Catholic Bishops did not respond to a Crux request for comment on the memo.
In a Jan. 28 statement on the original memo, Kerry Alys Robinson, Catholic Charities USA CEO & President highlighted the services provided by Catholic Charities agencies nationwide, including “food pantries for those who can’t afford groceries, childcare programs for low-income families, meal deliveries for homebound seniors, job training resources for veterans, temporary and permanent housing, mental health services and much more.”
“The millions of Americans who rely on this life-giving support will suffer due to the unprecedented effort to freeze federal aid supporting these programs,” Alys said. “The people who will lose access to crucial care are our neighbors and family members.
“They live in every corner of the country and represent all races, religions and political affiliations.”
Alys added that the organization looks forward to working with the government.
“For more than a century, the Catholic Charities network has worked with the government to care for poor and vulnerable people in every community in the U.S., and we continue to be eager to work with the government to care for our neighbors in need,” Alys said. “We strongly urge the administration to rethink this decision.”
