The Trump administration’s freeze on federal grants sparked chaos and confusion at state Medicaid agencies on Tuesday.

Federal agencies must stop disbursing financial assistance starting at 5 p.m. today under a new budget directive, threatening funding for providers and creating significant uncertainty for Medicaid payments to states.

Federal agencies must stop disbursing financial assistance under a new budget directive, threatening funding for providers and creating uncertainty around Medicaid payments to states.

The Office of Management and Budget Wednesday rescinded the memo calling for a sweeping pause on federal grants and loans after outcry over the damage it would cause to the many nonprofit groups and state and local agencies that depend on the funding,

The Trump administration is walking back a directive to pause trillions of dollars in government spending that bred uncertainty about the impact on everything from Medicaid to special education.

The website that states use to get Medicaid payments from the federal government is down, White House press secretary Karoline Leavitt said in a post on X, formerly Twitter.

Distribution of all federal grants and loans will be suspended at 5 p.m. Tuesday, per President Donald Trump’s direction. An Office of Management and Budget (OMB) memo that was released last night revealed that the impacted agencies must submit the appropriate information for their paused programs by Feb. 10, 2025, for review.

An executive order to freeze federal funding has put funding for critter organizations and key conservation programs in limbo.

Karoline Leavitt, the youngest person to serve as White House press secretary, made her debut in the briefing room Tuesday, saying that podcasters and social media influencers could apply to participate in future briefings.