Confusion abounds in Delaware after Trump administration rescinds memo on federal grants pause

USA Today

29-01-2025

Confusion abounds in Delaware after Trump administration rescinds memo on federal grants pause
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Judge halts President Trump's pause on federal aid money
A judge paused the Donald Trump's order to "temporary pause" certain federal assistance until at least Feb. 3, when another hearing will be held.
After lawsuits were filed to stop President Donald Trump's order pausing federal grants to states and cities, the memo about the president's order was rescinded Wednesday afternoon.
It's unclear Wednesday afternoon how that will affect Delaware programs and fund recipients, given the evolving nature of The White House order and its implications.
The 2-day-old order, officially known as OMB Memorandum M-25-13, said federal agencies "must temporarily pause all activities related to obligations or disbursement of all federal financial assistance."
After several lawsuits were filed, including one involving Delaware, a considerable amount of backlash, and a federal judge temporarily blocking the administration's policy, the federal Office of Management and Budget released a letter Wednesday canceling the memo.
"OMB Memorandum M-25-13 is rescinded," said the memo signed by Matthew J. Vaeth, the Office of Management and Budget's acting director.
White House Press Secretary Karoline Leavitt posted on X Wednesday afternoon that the rescission of the memo was not a rescission of the federal funding freeze.
This is NOT a rescission of the federal funding freeze.
It is simply a rescission of the OMB memo.
Why? To end any confusion created by the court's injunction.
The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented. — Karoline Leavitt (@PressSec) January 29, 2025
"It is simply a rescission of the OMB memo," she wrote on X. "Why? To end any confusion created by the court's injunction. The President's EO on federal funding remain in full force and effect, and will be rigorously implemented."
More: Trump administration rescinds freeze on federal grants, ending spending feud with Congress
Delaware impact
State and local agencies, as well as other groups that receive federal grants, were trying to understand the depths of the order's impact when it was rescinded on Wednesday.
Initially, the grants' halting appeared to mean there would be reductions, or an ending, of support services in Delaware for those who have been sexually assaulted, said Sheila Bravo, Delaware Alliance for Nonprofit Advancement's president and CEO.
It also would have meant the closing of shelters, senior serving programs, and abruption in services that provide assistance and support in areas such as mental health, health care, food, and child care, she said. Bravo said it was hard to tell when these services would have been affected since that depends on the organization's financial reserves to cover gaps.
"We are waiting to get some more information to understand implications," Bravo said.
It's not just nonprofits that the order impacts. State and local programs would also have been hurt. Some of the programs in New Castle County included:
The Housing Choice Voucher Program has assisted 1,402 families with rental assistance so far this January for a total of $1,334.942. Of the families housed, 398 were households headed by seniors and 537 had a disabled head of household.
Home Repair is a Community Development Block Grant, which is funded by the Department of Housing and Urban Development, and helps with emergency home repair. New Castle County currently has 60 units needing emergency home repairs that are in the pipeline to be completed. The county completed 74 units during the last budget year.
Continuum of Care Funds, which awarded the New Castle County Hope Center $92,160 for eight permanent supportive housing units at the Hope Center.
Prior to receiving this help, a county official said the people were sleeping outside, in cars or in emergency shelters.
"They are chronically unhoused, meaning they been unhoused for more than 1 year or have had repeated episodes of homelessness and have a disabling mental health condition," said Carrie Casey, the county's general manager of the Department of Community Services. "We have also received an additional allocation of $122,000 for next year."
Coalition lawsuit forges ahead
The lawsuit filed by Delaware Attorney General Kathy Jennings and other Democratic attorneys general to stop President Trump's order will continue — despite the memo about the order being rescinded.
"For now, the lawsuit is unaffected," said Mat Marshall, a Delaware Department of Justice spokesperson. "This is good news, but it's still too early to declare victory."
More: Delaware DOJ moves forward with lawsuit against President Trump's federal grant freeze
Given this is a voluntary policy rescission by the White House and not an enforced stay or a disavowal of policy, Marshall said the coalition will "forge ahead."
The coalition filed its lawsuit in federal court in Rhode Island on Tuesday and a judge there is scheduled to hold a hearing on it at 3 p.m. Wednesday (Jan. 29).
A federal judge in Washington D.C. had temporarily blocked the administration's policy after a coalition of advocacy groups filed a similar lawsuit.
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