BATAVIA, Ohio — Just one day after a memo from the U.S. Office of Management and Budget (OMB) sparked widespread confusion for states, schools and nonprofit organizations that rely on federal funding, the White House press secretary said that while the memo has been rescinded, President Donald Trump's executive order freezing federal grant spending is still in effect.
On Tuesday, a federal judge temporarily blocked the freeze until Monday, Feb. 3, after more than 22 states sued the Trump Administration. Officials said the pause was necessary to review whether spending aligned with Trump’s executive orders on issues like climate change and diversity, equity and inclusion programs.
But on Wednesday, officials sent out a two-sentence notice rescinding the original memo. Press Secretary Karoline Leavitt reiterated that statement on social media.
"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," she posted on X, formerly Twitter.
For some nonprofits in the Tri-State area, the rescission brings a sigh of relief.
"There won't be any disruption of services that we are currently providing," said Bill DeHass, CEO of Clermont Senior Services.
Watch our conversation with DeHass below:
About 48 hours ago, DeHass and the rest of the staff at Clermont Senior Services in Batavia were concerned the federal funding may go away.
"It was a lot to digest, it was at the end of the day, though I think we came to the conclusion that this was a pause ... on reimbursements," said DeHass. "We have operating reserves in place for any type of crisis-type situation."
The nonprofit provides care to about 4,000 seniors through Clermont County, with services like affordable housing, independent home care, home improvements and repairs and providing transportation for medical appointments. Its federal funding makes up about 10% of its total operating budget.
One of its goals is to help make life easier for seniors who want to live independently.
Last year, we introduced you to Everett Alsip, who has been living in his home for 13 years. It was getting tougher for Alsip to get around, but all of that changed in July 2024, when Clermont Senior Services replaced his steep stairs with a ramp with the help of the funding. He was one of many seniors who benefited from a $100,000 federal grant.
“The steps, they were too steep, we couldn’t get up carrying groceries and stuff. And by the time I got up to the top I was out of breath,” said Alsip.
While DeHass and his staff felt it never was going to reach a point where services would be cut or jobs would be cut, he's interested to see how things could change in the weeks and months to come.
"We're going to continue to keep an eye on it and see how things play out," said DeHass.
Watch Live:
