By Mary O’KEEFE

Monday night and all day Tuesday was a bit stressful for those who receive government grants and loans, including schools, veterans organizations, small businesses and non-profits, after a White House memo, dated Jan. 27, 2025, ordered a “temporary pause of agency grant, loan and other financial assistance programs.” 

Organizations throughout the nation panicked as they tried to understand the scope and meaning of the order. 

“The memorandum requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the President’s policies and requirements,” according to the memorandum. 

The problem was no one seemed to know exactly what that meant leading to the panic of several in grant-supported programs like Meals of Wheels, Head Start and some veteran care programs, mostly in rural areas where a federal grant helps get services to veterans. These programs, along with hundreds of non-profits, were put into a spin as they attempted to get answers. 

Later in the day on Tuesday, the Veterans Administration said that all 44 of its financial assistance programs would continue uninterrupted. 

At one point on Tuesday the Medicaid website was not able to be accessed but the White House stated Medicaid was not affected by the freeze. The online systems of Head Start and community health programs reportedly had their payment management service access to web portals cut off. 

The freeze was to go into affect on Tuesday at 5 p.m. EST; however, a reprieve was made in the form of a federal judge who temporarily blocked the freeze. 

On Wednesday, the Office of Management and Budget (OMB) rescinded its call for a pause on payments or federal grants and other programs; however, Karoline Leavitt, the Trump Administration press secretary, shared on X that “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 [executive order] on federal funding remain in full force and effect, and will be rigorously implemented.”