White House Rescinds Federal Aid Freeze In FL

Updated at 1:50 p.m. Wednesday:

A federal aid freeze announced this week by the Trump Administration has been rescinded, multiple sources are reporting Wednesday afternoon.

CNN reported that it has obtained a memo from a Trump administration official communicating that the freeze is rescinded.

The New York Times also reported the freeze was rescinded, citing two sources familiar with the matter.

On Tuesday, a federal judge had temporarily blocked the plan to halt the distribution of trillions of dollars in federal grants and loans until a hearing could be held Monday morning.

Democratic Rep. Maxwell Frost said on X formerly Twitter: "Donald Trump's reckless move to stop federal funding yesterday left nonprofits, local governments, and working families in panic and confusion. Today the Admin. is taking a step back not because they want to do the right thing but because the widespread outrage was undeniable. Trump is willing to play political games with people's livelihood but we won't let him."

Related: White House Rescinds Funding Freeze, Defusing Brewing Legal Battle

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FLORIDA — The Trump administration’s abrupt pause on trillions of dollars in federal grants and loans hit a roadblock late Tuesday when a federal district judge granted an administrative stay in the case.

NBC News reported the judge's ruling has paused the plan for a week and set a hearing for Monday morning.

The freeze in disbursements was meant to let the Trump administration conduct an ideological review of spending could cause widespread disruption in health care research, education programs and other initiatives in Florida.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” Matthew Vaeth, the acting director of the Office of Management and Budget, wrote in a memo late Monday.

The White House so far has offered few details about the scope of the freeze. While the full effect on Florida programs is unclear, Trump administration officials clarified Tuesday that programs that provide direct assistance to Americans would not be affected, such as Medicare, Medicaid, Social Security, student loans and food stamps. They also defended the funding pause, saying Trump was following through on his promise to turn Washington upside down if elected to a second term.

Amid uncertainty about federal programs, the Medicaid portal was experiencing an outage Tuesday. Sen. Ron Wyden of Oregon said his office confirmed that Medicaid portal outages were impacting all U.S. states.

White House Press Secretary Karoline Leavitt said in a statement that the White House is aware of the outage, that payments are still being processed and sent, and that the Medicaid portal will soon resume.

But it’s unclear if disaster assistance and other programs are affected. Even grants that have been awarded but not spent are supposed to be halted.

Democrats and independent organizations question the legality of the Republican administration’s funding freeze, characterizing it as capricious and illegal because Congress had already authorized the funding.

Court battles are imminent, and Democratic New York Attorney General Letitia James plans to ask a Manhattan federal court to block the Republican president’s moves, calling it an “unconstitutional pause on federal funding.”

“More lawlessness and chaos in America as Donald Trump’s Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country," Senate Minority Leader Chuck Schumer, a Democrat from New York, said in a statement. “If this continues, the American people will pay an awful price.”

The grants help people “in red states and blue states, support families, help parents raise kids, and lead to stronger communities,” Schumer said, adding that “it will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”

Democratic U.S. Rep. Debbie Wasserman Schultz condemned Trump's latest measure, saying it is not indicative of voter intention.

"Americans voted for lower prices – not to cut off critical services to fund tax breaks for billionaires. Trump’s illegal federal funding freeze puts vital resources for states, cities, schools, hospitals, American families and businesses at risk," Schultz tweeted Tuesday.

Fellow Democrat and U.S. Rep. Maxwell Alejandro Frost claimed the administration caused Florida's Medicaid portal to close, impacting 3.8 million residents.

"We’ve been on the phone with multiple agencies/orgs. They’ve been completely cut off from federal money. We’re talking housing, homeless services, public safety, etc.," Frost said in an earlier X post on Tuesday.

Frost followed up with subsequent tweets, declaring a medical provider that services low-income clients told him they "might not be able to make payroll" due to the portal shutdown.

"Flood the zone. Electeds, activists, & leaders, don’t assume people know what’s going on. Tell them everywhere that: Trump & Republicans stopped Medicaid. Trump & Republicans stopped housing assistance. Trump & Republicans stopped schooling for children," he tweeted.

The pause takes effect at 5 p.m. ET Tuesday, and it's unclear from the memo how sweeping it will be. Vaeth said that all spending must comply with Trump's executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.

Vaeth wrote that “each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.”

Washington is a hub of spending that flows to various departments, local governments, nonprofits and contractors, and the memo has left countless people who are dependent on that money wondering how they will be affected.

The pause is the latest example of how Trump is harnessing his power over the federal system to advance his conservative goals. Unlike during his first term, when Trump and many members of his inner circle were unfamiliar with Washington, this time he's reaching deep into the bureaucracy.

“They are pushing the president’s agenda from the bottom up," said Paul Light, an expert on the federal government and professor emeritus of public service at New York University.

He also said there are risks in Trump's approach, especially with so many voters reliant on Washington.

“You can’t just hassle, hassle, hassle. You’ve got to deliver.”

“Are you stopping NIH cancer trials?” Sen. Amy Klobuchar, a Democrat from Minnesota, wrote on social media, referring to the National Institutes of Health.

Sen. Patty Murray of Washington and Rep. Rose DeLauro of Connecticut, the top Democrats on the Senate and House appropriations committees, expressed “extreme alarm” in a letter to Vaeth.

"This Administration’s actions will have far-reaching consequences for nearly all federal programs and activities, putting the financial security of our families, our national security, and the success of our country at risk," they wrote.

The Associated Press contributed reporting.