CNN and NBC News report that the White House Office of Management and Budget has withdrawn the federal aid freeze on Wednesday.
A senior administration official confirmed the order—which was issued Monday night and temporarily blocked by a federal district judge Tuesday night—was rescinded Wednesday.
The order created chaos within the health care industry as it initially appeared to include funding for Medicaid. A KHN article noted that by midmorning Tuesday, state officials across the country reported they no longer could access an online portal that allows states to retrieve federal Medicaid funding. The Monday evening memo said federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance.
The original memo said the pause would allow the administration to review which programs were "consistent" with Trump's agenda, NBC News reported.
After state health officials urged the federal government to clarify what the order meant, KHN reported the White House Office of Management and Budget issued guidance later in the day on Tuesday to clarify that “mandatory programs like Medicaid” were not included in the freeze.
In a memo obtained by CNN and NBC News from a Trump administration official, the administration has rescinded the federal aid freeze.
Although the rescinded order comes as welcome news to nonprofits that work in health care, the actions this week concerned Medicaid advocates who are already concerned about the program’s future. KHN reports that while President Donald Trump vowed on the campaign trail not to seek cuts for Medicare or Social Security, he did not make the same promise about Medicaid, which pays for health care for primarily low-income and disabled people.
Indeed, congressional Republicans are also discussing cutting the nearly $900 billion program due to rising costs and enrollment, according to KHN. Federal funding for Medicaid is sent directly to states, which then distribute it to providers, health plans, and other entities that serve Medicaid enrollees.