The White House’s Office of Management and Budget has rescinded an order issued two days ago to freeze nearly all federal grants and loans.
The communication is the latest development in what Maryland leaders have described as chaotic, confusing and irresponsible governing.
“It had been done with such haste, and such lack of thought and such frankly ham-handed ways that we have now seen three decisions made within 48 hours essentially — it's on, it's off, we're not sure where it is,” Congressman Steny Hoyer told reporters Wednesday afternoon, shortly after OMB rescinded the order.
President Donald Trump’s actions related to the order were “deeply irresponsible,” Gov. Wes Moore said Wednesday morning at the beginning of the Board of Public Works Meeting, before the order was rescinded.
“They have caused unnecessary confusion, they’ve caused instability for our economy, and they've caused a great deal of fear amongst Marylanders, to include Marylanders who voted for this administration,” Moore said.
The Democratic governor reiterated those sentiments in a statement issued later Wednesday, after the order was rescinded.
"We are continuing to watch unrestrained chaos and contradictory guidance from this White House,” he said. "The White House needs to clearly articulate their commitment to spending money constitutionally appropriated by Congress.”
The original memo, issued Monday, directed federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
That directive led to confusion and fear among organizations and government agencies that rely on that funding.
Congresswoman Sarah Elfreth, whose district stretches from Mount Airy to Annapolis, said it would be difficult to find a constituent not affected by the frozen funds. She said the freeze would have affected roads, school lunches, sexual assault centers, cancer research and community colleges, among others.
Trump’s attempt to withhold congressionally approved funds violates both the Constitution and the Impoundment Act of 1974, said Congressman Johnny Olszewski.
“The Constitution gives Congress the power of the purse,” he said. “That was intentional. That was to avoid monarchy and dictatorship.”
Maryland was one of 22 states that challenged the funding freeze in court. On Tuesday, a federal judge in Rhode Island paused the freeze until Monday. Now the Trump Administration is arguing that the lawsuit is moot and should be dismissed.