A federal judge signaled that he will issue a temporary restriction order that prevents the Trump administration from freezing federal loans and grants, which is traveling regarding the White House will try to adopt the same policy described in the now listed memo from Office of management and budget.
District Judge John McConnell Jr. Has not entered the temporary restriction order in view of the rapidly changing circumstances, but signaled that he would sign an order proposed by the 22 state attorneys who brought the case.
McConnell had tough words for the Trump administration and justified his future order – despite OMB’s change of politics – based on a social speech by the White House press secretary Karoline Leavitt.
“I think the breadth of the relief that the plaintiffs are looking for is extraordinary,” argued the Department of Justice Attorney Daniel Swallow, before McConnell cut him off.
“Respectful, the breadth of the OMB Directive was,” McConnell said.
President Donald Trump looks at after delivering comments at House Republican Members Conference Dinner at Trump National Doral Miami, in Miami, Florida, January 27, 2025.
Mandel Ngan/AFP via Getty Images
Earlier Wednesday, Donald Trump’s administration sent a memo that canceled his sweeping directive trying to put potential trillion on loans, grants and financial assistance, according to a memo obtained by ABC News.
“Omb Memorandum M-25-13 is lifted,” says the short memo of Matthew Vaeth, acting director of the Office of Management and Budget. “If you have any questions about implementing the president’s executive orders, contact your agency’s general adviser.”
The new Directive follows a storming 48 hours for the White House as states and local authorities raised concerns that funding for health care, law enforcement, disaster relief and infrastructure expenses could be passed or delayed during the expansive roll -out of policy.
Leavitt defended the policy on social media and said that Trump is still planning to implement a financing freezing without specifying which mechanism the president is planning to use.
“This is not a cancellation of the federal financing freezing,” Posted Leavitt on X. “It is simply a termination of the OMB memo. Why? To end any confusion created by the court’s injunction. The president’s EOs on federal funding remain fully power and effect and will be implemented closely.
In the midst of the confusion, a federal judge on Tuesday in Washington, DC, issued a stay in politics through Monday when Attorneys for the Ministry of Justice struggled to confirm the extent of the directive. The policy was set to take effect at. 17 Tuesday.
“Without this funding, the plaintiff states will not be able to provide certain significant benefits to the residents, pay public employees, satisfy obligations and continue the important business of the government,” 22 State Attorneys said the lawsuit who challenged the policy on Tuesday.

President Donald Trump speaks at the 2025 House Republican Members Conference Dinner at Trump National Doral Miami in Doral, Fla., January 27, 2025.
Mark Schiefelbein/AP
On Monday, the Office of Management and Budget ordered federal agencies to freeze any federal funding for activities that may be involved by Trump’s executive orders, prompting states, local authorities and non -profit organizations to crawl to determine if their funding would be cut off. Less than 24 hours after the policy was revealed, the White House tried to clarify the policy of a memo and said that programs that provide direct benefits to Americans – such as social security, Medicare and Snap benefits – would be excluded from the freezer.
During the hearing on Tuesday, the lawyer fought for the Ministry of Justice to clarify exactly what would be affected.
“It seems that the federal government is currently not knowing the full extent of the programs that will be subject to the break. Is that correct?” American district judge Loren L. Alikhan asked.
“I can only speak for myself, which is just based on the limited timeframe here that I do not have a comprehensive list,” said DOJ -Attorney Daniel Swit .
This is an evolving story. Please check back for updates.