White House revokes spending freeze in the face of legal challenges

By Jeff Mason, Steve Holland and Andy Sullivan

President Donald Trump’s administration appeared to abandon its proposed freeze on hundreds of billions of dollars in aid on Wednesday in the face of legal setbacks and widespread opposition, though officials said they still planned to cut funds for activities opposed by Trump.

In a whip-saw reversal to a policy unveiled with little explanation late on Monday, the White House budget office told federal agencies it was rescinding a memo that had ordered the pause in grant and loan payments.

The new order came shortly before a federal court hearing on a lawsuit filed by Democratic state attorneys general trying to stop the freeze. A White House official said the reversal was an attempt to short-circuit legal challenges.

U.S. District Judge John McConnell nonetheless went ahead with the hearing, where he said he was inclined to temporarily block the administration’s aid freeze,