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Inside the Chaotic Rollout of Trump’s Federal Funding Freeze

Inside the Chaotic Rollout of Trump’s Federal Funding Freeze

The New York Times
Thursday, January 30, 2025 07:02:11 AM UTC

The order that froze trillions of dollars of federal grants and loans was published without vetting by key officials in the White House.

The explosive Trump administration order that froze trillions of dollars of federal grants and loans this week was published without vetting by key officials in the White House, according to three people with knowledge of what happened.

The order was drafted inside the Office of Management and Budget by the agency’s general counsel, Mark Paoletta, two of the people said. And it was released without being shown to the White House staff secretary, Will Scharf, or to Mr. Trump’s top policy adviser, Stephen Miller.

The people spoke on the condition of anonymity to describe sensitive discussions.

The White House rescinded the directive on Wednesday after legal challenges and widespread condemnation and confusion, including the interruption of the Medicaid system, which provides health care to millions of low-income Americans. President Trump was angered by the media coverage of the order and its aftershocks, according to a person who spoke to him.

During a bill signing at the White House on Wednesday, Mr. Trump cast blame on the media for the confusion. “We are merely looking at parts of the big bureaucracy where there has been tremendous waste and fraud and abuse,” he said.

White House officials and a spokeswoman for the Office of Management and Budget did not immediately respond to requests for comment on Wednesday.

Read full story on The New York Times
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