Federal judge signals he will block Trump administration from freezing funding despite OMB rescission
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(WASHINGTON) — A federal judge signaled he will issue a temporary restraining order barring the Trump administration from freezing federal loans and grants, raising concerns the White House will try to enact the same policy described in the now-rescinded memo from the Office of Management and Budget.
District Judge John McConnell Jr. has not entered the temporary restraining order given the rapidly changing circumstances, but signaled he would sign an order proposed by the 22 state attorneys general who brought the case.
McConnell had harsh words for the Trump administration and justified his future order — despite the OMB’s change of policy — based on a social post by White House press secretary Karoline Leavitt.
“I think the breadth of the relief that plaintiffs are seeking is extraordinary,” argued Department of Justice attorney Daniel Schwei before McConnell cut him off.
“Respectfully, so was the breadth of the OMB directive,” McConnell said.
Earlier Wednesday, Donald Trump’s administration sent a memo rescinding its sweeping directive that sought to pause potentially trillions in loans, grants and financial assistance, according to a memo obtained by ABC News.
“OMB memorandum M-25-13 is rescinded,” the short memo from Matthew Vaeth, the acting director of the Office of Management and Budget, reads. “If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”
The new directive follows a tumultuous 48 hours for the White House, as states and local governments raised concerns that funding for health care, law enforcement, disaster aid and infrastructure spending could be paused or delayed during the expansive rollout of the policy.
Leavitt defended the policy on social media, saying Trump still plans to implement a funding freeze without specifying what mechanism the president plans to use.
“This is NOT a rescission of the federal funding freeze,” Leavitt posted on X. “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.”
Amid the confusion, a federal judge on Tuesday in Washington, D.C., issued a stay of the policy through Monday as lawyers for the Department of Justice struggled to confirm the extent of the directive. The policy had been set to go into effect at 5 p.m. on Tuesday.
“Without this funding, Plaintiff States will be unable to provide certain essential benefits for residents, pay public employees, satisfy obligations, and carry on the important business of government,” 22 state attorneys general had said in the lawsuit challenging the policy Tuesday.
On Monday, the Office of Management and Budget ordered federal agencies to freeze any federal funding to activities that might be implicated by Trump’s executive orders, causing states, local governments and nonprofits to scramble to determine if their funding would be cut off. Less than 24 hours after the policy was revealed, the White House attempted to clarify the policy in a memo, saying programs that provide direct benefits to Americans — such as Social Security, Medicare and SNAP benefits — would be excluded from the freeze.
During the hearing Tuesday, the lawyer for the Department of Justice struggled to clarify exactly what would be affected.
“It seems like the federal government currently doesn’t actually know the full scope of the programs that are going to be subject to the pause. Is that correct?” U.S. District Judge Loren L. AliKhan asked.
“I can only speak for myself, which is just based on the limited time frame here, that I do not have a comprehensive list,” DOJ lawyer Daniel Schwei said, adding, “it just depends” on the type of program and funding source.
This is a developing story. Please check back for updates.
(NEW YORK) — The Trump administration’s cuts to the federal workforce affect the World Trade Center Health Program, putting the health of 9/11 first responders at risk, critics said.
Sixteen probationary staff members at the World Trade Center Health Program have been fired as part of the layoffs at the Centers for Disease Control and Prevention (CDC). Several other full-time staff members have agreed to take a buyout, according to Citizens for the Extension of the James Zadroga Act.
The firings and buyouts amount to a 20% reduction in the staff that supervises and administers the World Trade Center Health Program. There are also cuts to research grants that fund efforts at the New York City Fire Department (FDNY) to determine whether new health conditions are related to service at the World Trade Center site on and after 9/11.
Decisions on certifications to allow for treatment of new cancers and other conditions will be delayed because of the firings and layoffs, Benjamin Chevat, of Citizens for the Extension of the James Zadroga Act, told ABC News. Additionally, decisions on pending petitions to expand coverage to autoimmune and cardiac conditions will be delayed and there will be fewer people to intervene when there are problems with prescriptions and treatment, according to Chevat.
“We cannot believe that the Trump administration or the new HHS Secretary, Robert Kennedy Jr. intends to harm 9/11 responders and survivors in the World Trade Center Health Program, but that will be the outcome of these cuts,” Chevat said.
In a letter to Health and Human Services Secretary Robert Kennedy Jr., New York Senators Kirsten Gillibrand and Chuck Schumer demanded that the funds be restored.
“‘Never forget’ is not just a slogan. It is a sacred promise to always stand by 9/11 heroes, a promise being broken by slashing funding and vital staffing for their healthcare in the World Trade Center Health Program. It’s unacceptable, and un-American,” said Schumer in a joint statement with Gillibrand. “To say funding for 9/11 first responders is government waste is outrageous and insulting.”
“These brutal cuts mean layoffs for staff who have dedicated their careers to caring for our 9/11 survivors. It means delayed care for our sick first responders. It is telling 9/11 survivors that after they risked everything to protect us, we can’t support their healthcare needs,” the statement continued.
The World Trade Center Health Program was created in 2011 as part of the Zadroga Act. It was extended until 2090 to compensate the growing number of people who have contracted illnesses related to 9/11.
About 140,000 survivors have enrolled in the World Trade Center Health Program, including about 12,000 last year alone, according to the CDC.
“Slashing funding and laying off workers who run this vital program will have a devastating impact on its ability to provide sick responders and survivors with the care they need. This is betrayal of our heroes who stepped up and risked their lives to put our community back together in one of our nation’s darkest hours, and we will not let it stand. HHS Secretary Kennedy must reverse these cuts and terminations immediately,” Gillibrand said in the statement.
(WASHINGTON) — After a weekend of confusion, the Trump administration on Monday afternoon told federal agencies they don’t have to direct workers to comply with Elon Musk’s request for information about their activities at work, and that doing so is voluntary, according to two sources familiar with the matter.
The Office of Personnel Management — effectively the human resources agency for the federal government — updated agency human resources officers on a Monday call over Elon Musk’s call for the Trump administration to fire federal workers who did not reply to an email asking them to submit an email listing their accomplishments from the previous week.
Adding to the confusion are Trump’s own comments Monday, when he told journalists in the Oval Office there was a “lot of genius” behind Musk’s proposal, and that workers would be “sort of semi-fired” if they don’t respond.
OPM did not respond to a request for comment on the instructions given to federal agencies.
In the latest effort by the Department of Government Efficiency to investigate efficiency and reduce the size of the government, employees were asked in an email from the Office of Personnel Management on Saturday to list five accomplishments over the previous week and reply by 11:59 p.m. ET on Monday.
Musk threatened on social media that employees would face termination if they do not comply. The original email sent to employees did not include such an ultimatum, leaving some employees unaware of the threat.
However, some federal agencies told employees not to respond to the OPM email, some advised that employees should reply and others said that replying is “voluntary,” creating uncertainty among the rank and file.
Musk’s ultimatum raised questions about how much authority he holds in the government. While the White House argued in a court filing that Musk has no true power, Musk doubled down on his ultimatum Monday morning, warning that “Those who do not take this email seriously will soon be furthering their career elsewhere.”
Trump endorsed the email while taking questions Monday with French President Emmanuel Macron.
“I thought it was great because we have people that don’t show up to work, and nobody even knows if they work for the government,” Trump said. “So, by asking the question, ‘Tell us what you did this week,’ what he’s doing is saying, ‘Are you actually working?'”
“And then if you don’t answer like you’re sort of semi-fired or you’re fired because a lot of people are not answering because they don’t even exist,” Trump said.
Asked later Monday about the change in OPM policy, a White House official said, “DOGE is moving fast, at the direction of POTUS, and that’s exactly the point.”
“It’s all about efficiency, even internally,” the official added.
In a statement, White House press secretary Karoline Leavitt said, “Everyone is working together as one unified team at the direction of President Trump. Any notion to the contrary is completely false.”
Mixed messages
Federal employees on Saturday began receiving the OPM email with the subject line “What did you do last week” that demanded they list “5 bullets of what you accomplished last week and CC your manager,” according to multiple sources and an email reviewed by ABC News.
The subject line came from Musk’s playbook: “What did you get done this week?” is the same message he sent to the CEO of Twitter (now X) Parag Agrawal before Musk bought the company and fired the CEO.
A spokesperson from the Office of Personnel Management said Saturday that “agencies will determine any next steps.”
Yet management at multiple agencies told their staff that they were waiting on further guidance and, in some cases, told them to hold off on replying, according to multiple sources.
Employees at the Justice Department were told that they did not need to respond to the OPM request, according to an email obtained by ABC News. The Defense Department told employees who received the email to “please pause any response.” The Pentagon official filling in as the Department’s top personnel officer said that DOD would review any performance of personnel according to its own procedures, but added that “when and if required” it would coordinate responses to OPM’s email.
Newly confirmed FBI Director Kash Patel also told staff to “please pause any responses” to the email.
Employees at agencies including the Federal Emergency Management Agency, the National Oceanic and Atmospheric Administration, the Centers for Disease Control and Prevention, and the United States Department of Energy were told by senior staff that they were waiting on further guidance and, in some cases, told to wait for further notice before responding.
NASA acting Administrator Janet Petro informed employees on Monday before OPM’s guidance went out that responding to the email was optional and that not responding would have “no impact to your employment,” according to an email obtained by ABC News.
“Employees may have already responded or may still choose to respond. You are not required to respond, and there is no impact to your employment with the agency if you choose not to respond,” Petro wrote in the email.
Other agencies directed employees to reply. Speaking to Fox News on Monday morning, Transportation Secretary Sean Duffy explained why his employees should respond to Musk’s email.
“If you can’t come up with five things that you did, maybe you shouldn’t be employed here,” Duffy said, calling it an “easy task” that “happens in the private sector all the time.”
Leadership at the Treasury Department sent an agency-wide email Monday morning instructing all employees — including those at the IRS — to comply with OPM’s email by the deadline, according to an email obtained by ABC News.
However, the email still left some employees confused, particularly because it does not clarify whether failure to respond by the deadline could result in termination.
Federal workers who don’t follow Musk on social media could be unaware there’s an ultimatum on the table. While the administration did ask federal employees to list their accomplishments, the email did not state that those who failed to respond by the deadline would be fired.
Employees across agencies told ABC News they hadn’t seen Musk’s threats until they were asked for their reaction to them.
One IRS employee told ABC News that when they asked their direct managers whether not responding would result in them being fired, they were told, “We are only to adhere to official emails and ignore any directives not communicated through official channels.”
Another employee in management at the IRS said staff are “freaking out.”
Managers at the Department of Veterans Affairs told employees to respond to the email. One manager at the agency told ABC News that workers are “scared.”
“It’s not an exaggeration,” they said. “Everybody is afraid they are going to lose their jobs on a daily basis. There’s this fear that you’re going to open your email and you will be terminated.”
How much authority does Musk have?
It is not clear if Musk has the authority to terminate employees in this manner. However, he continues to act as if he does, threatening employees on Monday morning with administrative leave if they do not return to work this week.
White House lawyers attested in federal court that Musk “has no actual or formal authority to make government decisions.”
Trump aides have also said publicly that Musk is operating in an advisory capacity as a special government employee.
While Trump has said that Musk cannot do anything without his approval, the president has publicly heralded Musk as the leader of DOGE and lauded him for the job he’s doing in that capacity. On Saturday, shortly before the OPM email went out, Trump posted on his Truth Social platform, “ELON IS DOING A GREAT JOB, BUT I WOULD LIKE TO SEE HIM GET MORE AGGRESSIVE.”
-ABC News’ Devin Dwyer, Peter Charalambous, Selina Wang, Emily Chang and Michelle Stoddart contributed to this report.
Republican Rep. Mike Turner on Sunday refuted claims that the massive overhaul of the federal government by Elon Musk’s Department of Government Efficiency (DOGE) constitutes a federal crisis.
“Elon Musk goes about his job, which is a very important job, I mean the fact that we have Elon Musk looking from the private sector into the public sector, advising the president in ways that we can find ways to to reduce overall spending, to get this curve down is incredibly important and an unbelievable opportunity for for our government,” Turner said in an exclusive interview with co-anchor Martha Raddatz on “This Week.”
President Donald Trump tasked Musk with cutting federal spending through DOGE. Since Trump took office, Musk’s controversial task force has encouraged federal workers to leave their jobs and slashed many programs and agencies.
“In this instance, we have Elon Musk and the president of the United States going over to the bureaucracy and saying, ‘We’re going to tame you. We’re going to pull you back under the executive branch. We’re going to look at ways in which we can find savings, and we’re going to bring this spending curve down,'” Turner said.
Turner said that DOGE’s drastic cuts to the federal government will assist in meeting spending goals. The federal government is currently operating under a continuing resolution that was negotiated in December. The resolution is set to expire in March and without a new deal, the government will shut down.
Turner said: “This administration is taking an immediate assessment of where are we spending our funds and where do we need to spend them? And in order to do so, they need to take a stop, they need to take a critical view and let the American public know that their monies are being spent around the world, and they need to determine how they need to be spent in the way that advances U.S. interests and do so in a way that we can balance the budget.”
DOGE’s purge of the federal government resulted in the shuttering of the U.S. Agency for International Development. The Trump administration placed all USAID direct-hire employees on administrative leave effective Friday, but a federal judge late Friday blocked the move and reinstated some 500 USAID workers who had already been put on administrative leave and ordered that no USAID employees should be evacuated from their host countries before Feb. 14 at 11:59 p.m.
Turner said federal agencies needed fiscal and policy reviews.
“We’ve had USAID that has been separate from, really, the ambassador structure and our embassy structure. Commerce has been separate. DOD has been separate. You know, taking a view where we, how do we merge these back so we have one voice in foreign policy.”
But while Musk has made baseless claims of fraud within USAID, Turner emphasized the importance of the agency’s work.
“USAID is not a criminal enterprise, and people who work for the government have an important job to do, and they need to be honored,” he said.
Current and former officials warn that dismantling USAID could create a global vacuum that could be filled by U.S. adversaries like China. However, Turner, the former chairman of the House Intelligence Committee, said that he does not believe China will act.
“They’re not going to come in and start providing aid of this nature. They don’t have the heart for it,” he said. “They don’t have the goals and objectives for it. This is not what they do.”
Additionally, on Tuesday Trump announced in a joint press conference with Israeli Prime Minister Benjamin Netanyahu that the U.S. “will take over” the Gaza Strip. Trump outlined a scenario in which Palestinians would be relocated and the U.S. would own and rebuild Gaza. Experts warn that rhetoric like this could rattle the fragile ceasefire deal between Israel and Hamas.
Turner said Trump’s language does not worry him, but it might be distracting.
“I think it does pose the challenge of focusing on the fact that Hamas and the Palestinians and the terrorist structure that’s there needs to be dismantled, that Israel does deserve and need a peaceful structure.” Turner said.
