White House Rescinds Funding Freeze Memo: White House Press Secretary Caroline Leavitt Posts on X that "this is not a rescission of the federal funding freeze, just of the OMB memo, to end any confusion created by the Court's injunction, and the president's executive order on federal funding remains in full force and effect"
by Marc Elias
Democracy Docket
Jan 29, 2025
Today, the White House’s Office of Management and Budget (OMB) rescinded a controversial memo ordering a freeze on all federal grants and loans. The updated guidance rescinds the directives in a previous memo, originally released late Monday evening. Marc Elias and Paige Moskowitz explain.
Transcript
breaking news the Office of Management
and budget has rescinded its illegal and
unconstitutional guidance suspending all
federal grants and Loans hours after a
federal judge put it on hold Welcome
back to democracy docket I'm Mark Elias
and I'm Paige mosquit let's get started
you know Paige the next time I hear
someone say that the courts are not up
to saving democracy that Donald Trump
Will Roll right through the federal
courts he won't pay attention to their
orders you know that there's nothing
they can do I'm going to point them to
this video because here we are Paige
less than 24 hours since a federal judge
blocked the Trump effort to illegally
and unconstitutionally halt billions of
dollars of federal grants uh from going
out the door uh they have now rescinded
that order and this is why I always say
to Ry is on the
dock marike you said they tried to stop
billions of dollars but according to the
lawsuit filed by 23 Democratic Attorneys
General, the memo would have froze up to $3
trillion dollar in funds all right I
didn't mean to be uh you know
conservative in the estimates but I'm
glad you point that out because this was
an extraordinary order right I mean what
Donald Trump and his administration were
trying to do was frankly uh part of a
larger effort to be a dictator to be an
authoritarian ruler and we've talked in
other videos about how they do that
through replacing the federal uh
nonpartisan civil service that's one way
to take control the other way though to
take control page is to control the the
dispersement of funds right the as you
point out trillions of dollars right
that the that the federal government
disperses on a regular basis across the
you know wide swaths of of federal
programs and the economy and Donald
Trump was trying to seize control of
that so that he
could execute another part of his of his
authoritarian plan and it failed but
Paige I have to keep coming back to this
point you know how many times do you and
I hear in comments to videos that we do
or in social media or people write into
democracy docket and doubt that the
courts are up to the task and time and
time again I feel like I'm the one
defending saying look they're not
perfect and they're not going toop
everything but but they but you here we
are they they managed to to to end this
nonsense right Mark this memo was issued
Monday late Monday night we saw two
lawsuits filed Tuesday minutes before
the memo was supposed to go into effect
at 5:00 pm on Tuesday a judge blocked it
now you also saw the White House on
Tuesday swear up and down that this memo
was constitutional that it was legal for
the president to do this that they had
complete faith in the memo it was
blocked the courts blocked it as the
courts have blocked a couple of Trump's
major executive order so far into a
second term we saw a judge in Washington
called Trump's Birthright citizenship
order quote blatantly
unconstitutional the judge here in DC
yesterday wasted no time to block it now
she did temporarily pause it until
Monday but Mark as we've discussed that
was more kind of a procedural matter
until a full until a full hearing could
be held it wasn't her saying I'm kind of
wishy-washy on this it was more that's
just how these things work that's right
and you know kudos to democracy forward
a great uh nonprofit uh legal outfit by
the way I chair their board but I'd be
shouting them out anyway uh because they
they were the ones who led the charge in
this in this case uh and they also were
involved in the birthright citizen case
and you're going to hear their name a
lot so cudas them and all the lawyers
there and as you point out also the
State's Attorneys General who have also
been you know really on the ball in
bringing uh bringing uh litigation you
know Paige I also can't miss the moment
here to point out that we heard a lot
about how much more competent the Trump
Administration was going to be this go
round you know that that in the first go
round they were widely seen as sort of
buffoonish and didn't know which way was
up but that but they you know this time
they were coming in and they had this
all lawyered up and they were they were
going to be you know super effective and
you know you point out the quick
turnaround here like they have not
really hit the ground running I mean
they've hit the ground running in a sort
of a very um rhetorical way in a very
you know demagoguing issues way uh but
they're not exactly uh doing very well
in either the effectiveness department
or in the truthfulness department no
they' hit the ground running straight
into a wall like they their orders are
getting blocked they haven't been
successful thus far even though they're
claiming everything they're doing is
constitutional everything that they're
doing is legal and the fact of the
matter is Mark it's not the president
has a lot of power but there are limits
to that power and they come in the forms
of laws of the US Constitution in the
way things just work and it's one thing
for republicans and Democrats to have
disagreements on how the President
should administer his powers it's one
thing for Republicans to say it's fine
for the president to completely
disregard the Constitution and Democrats
have to be the ones to say no it's not
yeah and it's very interesting because
again a lot of the political commentary
has been very pro-republican I mean the
Legacy Media has capitulated to Donald
Trump I mean they had capitulated Donald
Trump before uh before the election we
saw them you know fetting Donald Trump
all across the board it's one of the
reasons why you know we continue to see
so much growth in the subscriber and the
membership base here at democracy doet
because we are giving you pure uh
unfiltered pro-democracy news and
information that that you know is not
afraid and not going to obey Donald
Trump. But you know
Paige the the fact is that not only have
they uh squandered This Time by passing
executive orders that have now been
blocked but they really haven't taken
advantage of the fact they have a
congressional majority I mean you know
you mentioned laws like as as easy as it
is to block unconstitutional executive
orders or illegal executive orders it
gets much more challenging to block
Congressional enactments now they can
still go to court and they can be
challenged as violation the Constitution
and uh but that process tends to take
much longer because you know courts tend
to assume that congress's laws are in
the first instance proper uh and so that
litigation we're all used to dragging on
for a very long period of time you would
not know from the actions of the Trump
White House or for that matter speaker
Johnson or John in the Senate you would
not know that they actually control all
three parts of the federal government I
mean you know why aren't why why didn't
they move this as a bill right like why
didn't like why didn't they just seek to
change the law about how money is spent
if there were programs they didn't want
money spent on I mean they they control
the house they control the Senate and I
think the answer is in part that they
have become so used to being a
sycophantic party that they want Donald
Trump to get credit for everything and
when a law gets passed last there's
credit that you know gets spread around
that's that's I think part of it but the
other thing is that fundamentally what
they want to do here is unpopular like
we cannot we cannot escape the fact that
you know Donald Trump may have won an
election narrowly but he did not run win
an election to shut down Meals on Wheels
you know he did not he did not win an
election to essentially shut down
medicaid uh in all 50 states and so I
think that's also paage part of the
story here that is not being fully
told right we've seen it time and time
again take the ACA for example right
Republicans for years have been talking
about how they want to repeal and
replace the ACA they had majorities
during Trump's first term they didn't
get it done they have a majority now
maybe they'll get it done but also as
we've just learned a record number of
Americans have signed up for healthcare
under the ACA it is a popular program
and it's a popular way for people to get
health insurance even though it is also
a popular talking point for republicans
and again to your point it is a lot
easier to blame an executive order that
got rescinded for shutting down medicaid
portals yesterday than passing a law
that does the same thing and again like
you said is a lot harder to undo a law
than undo an executive order yeah so
let's talk about where we go from here
um you know the White House is obviously
embarrassed by all of this they are
going to say that nothing has changed
which is a lie right but we have to
start with the proposition everyone that
the White House is going to lie like
Donald Trump lies about everything so
why isn't he going to lie about this
right uh he prizes people who lie on his
behalf so they will lie about this so
number one they're gonna say this
doesn't change anything and that he is
still fully in control and you know has
every bit of authority and plans to do
everything don't believe the liwes okay
this was a big loss for Donald Trump
this was a big victory um for the people
uh fighting this executive order in
court and it was a real I think uh
victory for the rule of law Donald Trump
lies about everything so he's going to
lie about this and he prizes people who
lie on his behalf so the White House is
going to lie about this and they're G to
say like nothing's changed and I'm here
to tell you that that is nonsense like
they got themselves slapped around by a
federal judge and that's why they backed
away and they know they'll continue to
get slapped around by a federal judge if
they try to do this in another form so
don't let them steal this Victory by
saying that it's not a victory right
Mark we're seeing it already the White
House Press Secretary Caroline Leavitt has
posted on X uh that this is not a rescision of the
federal funding freeze, just of the OMB
memo to end any confusion created by the
Court's injunction she says that the
president's executive order on federal
funding remains in full force and effect
and once again you have the Democratic
AGS pushing back New York attorney
general Tish James responded to Le and
said this just creates more confusion
and Chaos we will be in court this
afternoon yeah I mean look I I'm for CH
chish James but let's be
clear the White House is just saying
words you know it's like a it just like
the the White House Press person is just
like literally this is like the crowds
siiz thing with the first White House
Press Secretary what was his name uh
Sean Spicer right like like I mean like
I I like those are just like a bunch of
words strung together to make it sound
like something but that's crazy I mean
the fact is the federal judge put a put
a hold in place that hold is still in
place and mark my word mark my words the
whatever the the White House Press
Secretary is saying on X right now is
not going to be the position that they
take when this all gets sorted out in
court and certainly might not by the
court rules