Trump Admin Ends Its Pause on Federal Grants, but Federal Worker Buyout Offer Remains

UPDATE:  President Trump has been rocking Washington with big moves on his second week in office. The announcement of a temporary pause on federal grants, loans and financial assistance programs sparked a fierce debate, but on Wednesday afternoon, the administration backtracked.

Trump’s budget office announced it's rescinding the initial order that had frozen spending on federal grants to evaluate them. 

Republicans say a review of government spending is necessary, while Democrats had warned the sudden halt would disrupt vital services. 

Last night, a federal judge had blocked the measure. U.S. District Judge Loren Ali Khan paused the president's funding freeze order until February 3rd, saying that courts need time to weigh its potential implications.

Republicans disagreed with the ruling, arguing that the freeze is part of the administration's plan to conduct a 90-day, across-the-board review of government spending.

EARLIER REPORT:

"This is a work in progress," argued Republican Sen. James Risch of Idaho. "Everybody take a deep breath. Stay calm. Every one of these programs is going to be looked at. He didn't say what we're going to do a two-year study, blah, blah, blah. He said 90 days, we're going to look at it and it's working."

The president signed executive orders in recent days targeting the Biden administration's funding of progressive causes.

The new White House Press Secretary, Karoline Leavitt, in her first briefing, insisted that funding for Social Security, Medicare, food stamps, student loans, and scholarships will not be affected.

"What does this pause mean? It means no more funding for illegal DEI programs," said Leavitt. "It means no more funding for the Green New Scam that has cost American taxpayers tens of billions of dollars. It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies."

Democrats are pushing back, saying the funding freeze is causing chaos and panic among organizations that rely on Washington for their financial lifeline.

"The blast radius of this terrible, unconstitutional, and illegal decision is virtually limitless. Its impacts are going to be felt over and over and over again by families," said Senate Minority Leader Chuck Schumer (D-NY).

The president of Catholic Charities warned in a memo that the federal freeze could impact the work they do with the poor and vulnerable.

The New York chapter of Catholic Charities was affected on Tuesday when the Head Start portal went offline temporarily.

Trump Offers Federal Workers a Buyout

Late yesterday, the president made another big move, offering most federal workers a buyout, if they resign within the next few weeks, in an apparent effort to shrink the size of the government.

DHS Secretary Noem Joins ICE Raid in NYC

Meanwhile, newly appointed DHS Secretary Kristi Noem joined ICE agents on their first major crackdown on illegal immigrants in New York City.

Posting on X, Secretary Noem said several individuals were apprehended, including a ringleader of a Venezuelan gang.

"Here, in New York City this morning, we're getting the dirt bags off the street," Secretary Noem said.

Today, in the Senate, one of President Trump's most controversial nominees, Robert F. Kennedy, Jr., begins hearings for Secretary of Health and Human Services.