After widespread panic and confusion, the White House has rescinded its memo ordering a freeze on federal aid spending.
According to the state budget office, nearly $34 billion of Michigan’s budget is funded by federal dollars, equating to 42% of the total fiscal year 2025 budget.
State agencies have been scrambling to figure out how a potential pause in federal financial aid could impact vital programs in Michigan. So have cities, nonprofits, and universities across the state.
But the Trump Administration warns it’s not backing down on a federal funding freeze.
White House Press Secretary Karoline Leavitt posted on X: This is NOT a rescission of the federal funding freeze.
It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s (executive orders) on federal funding remain in full force and effect and will be rigorously implemented."
On Tuesday (Jan. 28), a federal judge delayed the temporary freeze from going into effect on Jan. 28 in response to a legal challenge. A hearing on the matter was set for Monday (Feb. 3).
The Michigan Democratic Party issued a statement criticizing the president.
“No one should be playing games with real people’s lives, not knowing if they could pay rent or put food on the table. Trump has shown once again that he does not care what his agenda does to working Michiganders as long as it lines the pockets of billionaires,” Michigan Democratic Party Chair Lavora Barnes said.
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