The Trump administration has reversed a memo that imposed a broad freeze on federal grants and loans, following backlash from Republican senators who were caught off guard by the order. The memo, which created confusion in states across the country, prompted a wave of protests from GOP lawmakers, particularly as it threatened to disrupt key services and funding programs.
Although Republican senators initially avoided publicly criticizing President Trump, they were privately furious, according to Senate sources. The memo, issued Monday by the Office of Management and Budget (OMB), appeared to halt a wide range of federal funding, creating uncertainty in various sectors. One Republican senator, speaking on condition of anonymity, said, “Republicans were starting to hit the ceiling because state governments, people in our states, were coming to us saying, ‘Wait, wait, wait, what does this mean? Does it mean we’re going to lose funding for X, Y, Z?’”
Another senator echoed that concern, describing the memo as “shocking” and saying it caused widespread confusion. “We were all hyperventilating because of the pause on federal funds and programs,” the senator added.
GOP senators, led by Appropriations Committee Chair Susan Collins (R-Maine) and Sen. Lisa Murkowski (R-Alaska), quickly reached out to the White House, urging them to clarify the memo’s impact. Collins said she made it clear that the directive was too broad and caused significant confusion in her state, particularly for nonprofit organizations. “I’m glad that it’s apparently been rescinded,” she said Wednesday afternoon.
Murkowski also voiced concerns about the impact in Alaska, where the freeze led to disruptions in access to federal services. “I met first thing this morning with the Head Start folks from Alaska, and of course Head Start was to be one of those not touched by the funding freeze, but yesterday no one was able to access the portal,” she said.
Sen. Jerry Moran (R-Kan.) noted that the lack of clear information on the freeze led to heightened anxiety among constituents, prompting many to reach out to their representatives. “The lack of information is what captures people, that they would pick up the phone and call or email us,” he said. “Once they get the chance to ask the questions, the level of anxiety is significantly diminished.”
Republicans also expressed frustration that incoming Cabinet members, like Transportation Secretary Sean Duffy, were unaware of the memo before it was issued. “There was quite a bit of consternation within the administration,” a GOP senator remarked. “Sean Duffy, who just got confirmed, his staff just had a heart attack when they saw the memo.”
Sen. Mike Rounds (R-S.D.) suggested that White House officials might consider better communication with lawmakers in the future to avoid such confusion. “It’s always appreciated and sometimes can make it a little bit easier to be implemented or in some cases to help sell the plan to the public,” he said. “That’s his choice. I think every White House goes through that growing stage of who’s in [the know] and what they need to talk about and what they should hold private until it’s actually released.”
Sen. Shelley Moore Capito (R-W.Va.) confirmed that her constituents were alarmed by the freeze, particularly in relation to grants and loans. “I’ve heard from several West Virginians with concerns about OMB’s memo that indicated the freezing of federal grants, loans, and other financial assistance programs,” she said, adding that she supported the decision to rescind the memo.
The memo’s impact was felt far beyond Capitol Hill. Kendra Davenport, CEO of Easterseals, a nonprofit group serving people with disabilities, veterans, and seniors, described the disruption caused by the freeze. “There was no preamble to the chaos that took place,” she said, explaining that the sudden halt of access to federal funds created severe operational problems, including difficulties with payroll and program funding.
One Republican senator described the memo as an “unforced error,” adding, “Chaos is never good.”
While the White House rescinded the memo on Wednesday, replacing it with a new directive, confusion lingered over what exactly was still affected by the freeze. White House Press Secretary Karoline Leavitt sought to clarify the administration’s position, stating that Trump’s executive orders—particularly those halting foreign development assistance and terminating federal diversity, equity, and inclusion programs—remain in effect.
“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,” Leavitt said. “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.”