Trump administration rescinds federal funding freeze memo after chaos

WASHINGTON — The White House Office of Management and Budget today walked back a memo that ordered a freeze on federal assistance, less than two days after the directive led to chaos and confusion around the country as to what programs would be impacted.

The latest two-line memo from acting Director of the Office of Management and Budget Matthew Vaeth states that the earlier directive is rescinded. It directs those with questions about implementing President Trump’s executive orders to contact the general counsels at their agencies.

“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House press secretary Karoline Leavitt said today. “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. This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending.”

By MELISSA QUINN/CBS News

John F. McCarthy is a veteran journalist in the Caribbean, writing from the "Decision Space" where survival meets the surreal. His reporting steel was tempered by a lineage of legendary editors and broadcasters, including Ed Wynn Brant (The Bomb), Owen Eschenroder (Ann Arbor News), Lynelle Emanuel (BVI Beacon), and Charles Thanas (WSVI-TV). Alongside longtime colleague Kenneth C. "Casey" Clark, McCarthy has navigated the front lines of the territory’s history—from the 1997 volcanic "snow" to every major hurricane since Hugo. Known for leaning out of doorless helicopters to capture the "money shot," McCarthy now edits the V.I. Free Press, providing the essential link between the island's colonial past and its SpaceX future.