The White House on Wednesday rescinded a widespread freeze on federal grants and loans, one day after a federal judge issued an order temporarily blocking it.
The federal funding freeze, announced on Jan. 27, initially created uncertainties for school officials, as it wasn’t immediately clear whether major funding sources like Title I and IDEA would be affected.
The U.S. Department of Education later clarified that the freeze only applied to discretionary grants, not core education funding. Title I, IDEA, Federal Pell Grants, Direct Loans under Title IV, and other formula grants were not impacted.
The Trump Administration had said the funding pause was necessary to allow staff time to review existing financial assistance and ensure it aligned with its priorities. However, U.S. District Judge Loren L. AliKhan issued an order that put the freeze on hold just minutes before it was set to take effect, following a challenge from a coalition of organizations.
The White House Office of Management and Budget officially rescinded the freeze with a memo issued on Wednesday morning.