UPDATE: President Trump rescinds memo ordering freeze on federal grants
This story has been update with the new information about President Donald Trump rescinding the memo.
The Trump administration rescinded a memo describing a freeze Wednesday on federal grants and loans after setting off a firestorm in Congress and at least two lawsuits disputing who controls spending priorities, according to White House press secretary Karoline Leavitt.
The Office of Management and Budget aimed to review grants and loans to ensure they complied with his priorities, which lawmakers and legal experts blasted as unconstitutional, Leavitt told reporters on Tuesday.
Congressional Democrats insisted the Constitution gives Congress the power to control spending decisions. A federal judge on Tuesday had temporarily blocked the Trump administration policy.
In a statement to reporters on Wednesday, Leavitt said "in light of the injunction" OMB is pulling back its memo "to end any confusion on federal policy created by the court ruling and the dishonest media coverage."
The original story from before Trump rescinded the memo is below.
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As President Donald Trump takes wide and swift action to reshape the federal government and its workforce, his actions have provoked strong responses on both sides of the issue from Maryland's leaders.
Here's the latest on what Trump has done on the federal level, then a look at what Maryland leaders are doing and saying in response.
Trump's pause on federal grants halted temporarily by judge
The Trump administration on Monday moved to temporarily pause grant, loan and other financial assistance programs at the Office of Management and Budget, according to a memo seen by Reuters.
A federal judge on Tuesday temporarily blocked the Trump administration policy, which lawmakers and legal experts blasted as unconstitutional.
A lawsuit challenging the policy announced in President Donald Trump's second week back in office hit the docket less than 24 hours after news of the policy became public.
U.S. District Judge Loren AliKhan ordered the Trump administration not to halt grant funding until at least Feb. 3, when another hearing will be held on the dispute. The judge said her temporary ruling was intended to "maintain the status quo." It does not block the Trump administration from freezing funding to new programs, or require it to restart funding that has already ended.
Trump's call for a pause on federal grants referenced the executive orders, including those seeking to dismantle programs related to diversity, equity and inclusion (DEI), he has signed since taking office last week.
"In the interim, to the extent permissible under applicable law, federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities that may be impacted by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal," Matthew J. Vaeth, the acting director of the Office of Management and Budget, wrote in the memo.
Trump administration offers buyouts to federal workers
The Trump administration is also offering buyouts to all federal employees who don't wish to return to work at the office, in a push to significantly reduce the size of the federal workforce.
The offer, outlined in a memo the U.S. Office of Personnel Management sent to employees Tuesday, would give federal workers eight months of pay and benefits through September if they resign by Feb. 6.
Maryland joins in lawsuit challenging Trump action on federal grants
Attorney General Anthony G. Brown announced Tuesday night that Maryland has joined a coalition of 22 attorneys general suing to stop the implementation of the new Trump administration policy pausing federal grants.
In his announcement, Brown wrote that "policy would immediately jeopardize state programs that provide critical health and childcare services to families in need, deliver support to public schools, combat hate crimes and violence against women, provide life-saving disaster relief to states, and more.."
“All Marylanders would be affected by this unconstitutional pause on federal funding, but those who would bear the brunt of the damage are our most vulnerable and marginalized neighbors who rely on these resources to pay for early childhood education, health care, and housing,” said Brown. “Our Office uses federal resources to crack down on Medicaid fraud, protect elderly and disabled Marylanders from abuse, and ensure pricing for food remains affordable for everyone in our State."
Maryland comptroller: More than $23 billion at stake
Maryland Comptroller Brooke Lierman put a dollar figure on what she said was at stake with Trump's move to pause federal grants.
“The decision by the Trump administration to attempt to freeze the disbursement of federal grants and loans is deeply concerning because of its potential impact on Maryland residents, communities, businesses, and nonprofits and because of the chaotic nature of the announcement. Although temporarily stayed by a federal court, this unilateral decision could put crucial programs and services for millions of Americans at risk," wrote Lierman in a statement.
"According to our agency’s single audit, during the 2023 fiscal year, the federal government awarded more than $23 billion in grant funding to the state of Maryland."
Trump's action provokes strong Maryland responses on both sides
As the fallout from Trump's moves on the federal government continues to unfold this week, it has provoked strong response from Maryland officials on both sides of the issue.
Rep. Andy Harris, a Republican who represents the Eastern Shore from Maryland's 1st District, had this to say to the Washington Post about Trump's offer of buyouts to federal employees.
“If, at the end of this exercise, we have achieved in converting public employed personnel to privately employed personnel working competitively in the private sector to increase our GDP and make things here in the United States … that’s probably a good thing,” said Harris, chairman of the House Freedom Caucus, to the Washington Post. “In the short run, will there be people in my district who may lose a federal job? Yes. But we’re in a region that is very economically vibrant, and there should be other opportunities for those individuals.”
Rep. April McClain Delaney, a Democrat who represents Washington County in the 6th District, which stretches from rural Western Maryland to the Montgomery County suburbs, sounded off on Trump's call for pausing federal grants.
"The impact of these freezes is far-reaching — from nutrition assistance to farm aid to highway funding to small business loans to workforce education to cancer and innovation research at NIST and NIH. It is even more concerning to hear that federal program funding for Medicare/Medicaid, SNAP, WIC and other direct-pay programs is also currently frozen–despite the Trump administration promising otherwise," McClain-Delaney wrote.
On the local level in Wicomico County, Executive Julie Giordano came down squarely on the side of Trump.
“President Trump is taking necessary steps to ensure fiscal responsibility at the federal level, and I support his efforts to review and reassess how taxpayer dollars are allocated. Here in Wicomico County, we understand the importance of responsible budgeting, and I believe his approach will ultimately lead to a more efficient and accountable government," she wrote. "While there are concerns about the short-term impact of these decisions, I trust that the administration will work to ensure that essential programs remain funded while eliminating unnecessary spending.”
And Maryland Gov. Wes Moore had his own succinct summary of how he sees the flurry of Trump actions:
"This is not what responsible government looks like – it’s chaos," he wrote.
USA Today reporters Bart Jansen, Joey Garrison, Francesca Chambers and Jessica Guynn, and Reuters reporters Steve Holland and Jasper Ward contributed to this report.