White House rescinds memo on freezing federal grants and loans
The White House says it has rescinded a memo authorising a federal freeze on hundreds of billions of dollars in grants and loans, which sparked widespread panic among millions of people who rely on government aid.
It comes after a judge temporarily halted the order on Tuesday, only hours after it was signed by President Donald Trump and the memo announcing it was issued by the Office of Management and Budget (OMB).
The judge paused the order until next Monday, after a lawsuit was filed by a group of organisations representing grant recipients.
The new letter issued on Wednesday states "OMB Memorandum M-25-13 is rescinded."
"We are glad that this memo has been rescinded. The chaos unleashed by the uncertainty and lack of adequate notice yesterday should never have happened," said Diane Yentel, president and CEO of National Council of Nonprofits - one of the groups suing the White House over the order.
Nonprofit organizations throughout the country and the people they serve can breathe a sigh of relief now that the White House has, at least for now, backed off its reckless and harmful plan to halt all federal funding for critical programs from homelessness and housing assistance, to disaster relief and rebuilding, to rape crisis centers and suicide hotlines," her statement on Wednesday added
In an earlier press conference on Tuesday, Ms Yentel said that if implemented, the order would severely impact food and housing programmes for military veterans, shelters for survivors of domestic violence, childcare assistance.
Citizens are waiting to see what plans emerge next.
www.bbc.co.uk/news/articles/cyv48540n4po