LAKE TAHOE, Calif./Nev. – As of 1:00 p.m. EST, an internal memorandum sent from acting director of the Office of Management and Budget (OMB), Matthew J. Vaeth, stated that the memo on Monday that prompted the spending freeze was rescinded, likely due to backlash from the public.

The official memo reads, “OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”

Democracy Forward, the group representing the nonprofits and public health organizations that sued the administration, said in an official statement, “Facing legal pressure from our clients and in the wake of a federal judge ruling in our case last evening, the Trump-Vance administration has abandoned OMB’s ordered federal funding freeze. We are proud of our courageous clients–who represent communities across the nation–for going to court to stop the administration’s unlawful actions.”

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Press secretary Karoline Leavitt said that only the memo was rescinded, not the executive orders related to it. While it’s unclear what that would actually mean, it likely refers to the executive orders that target diversity, equity, and inclusion (DEI), transgender rights, and environmental justice.

On Monday, the Office of Management and Budget (OMB) sent a memo out that called for a spending freeze on federal funding and grants by 5 p.m. EST on Tuesday, citing that the Trump administration would conduct an ideological review of federal spending. Though the action has been paused by a federal judge until next Monday afternoon, local agencies and representatives have expressed confusion and worry about the potential effects that it could have on Lake Tahoe, which utilizes federal funding for projects and assistance around the basin.

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The proposed freeze could affect a multitude of programs from federal aid to nonprofits. While Medicaid, Social Security, SNAP, small business assistance, Head Start, rental assistance, and federal Pell Grants for college students will not be affected, according to a memo released on Tuesday, thousands of other agencies were ordered to answer questions by the end of next week for each program that “has funding or activities planned through March 15.”

“[Placer County] staff is actively collaborating with our representatives and advocates to assess and address any potential short- or long-term impacts,” said Cindy Gustafson, Supervisor – District Five, Placer County Board of Supervisors. “We remain hopeful that OMB will complete its review promptly and lift the funding pause without affecting the vital services our residents, visitors, and businesses rely on. I will remain vigilant and will most definitely let our elected representatives and our community members know if we believe their needs and community priorities will be impacted by this directive.”

Alongside Placer, Nevada County has been watching the order closely. District 5 Commissioner Hardy Bullock voiced serious concerns over the potential freezing of federal grant and social assistance funding, warning that such cuts could have far-reaching consequences for Nevada County’s essential services and vulnerable populations. He stressed that these funds are a cornerstone of core service provisions, supporting critical programs such as food assistance, transportation, and economic development initiatives. Additionally, they play a vital role in sustainability and environmental protection efforts, which are crucial for preserving the county’s rural way of life, particularly in the face of increasing threats like wildfires and deteriorating air quality.

Bullock emphasized that the county is closely monitoring the situation, with lobbying firms and congressional representatives actively engaged in tracking potential policy shifts and advocating for continued funding. If the freeze is upheld, it could severely impact local families and employees who depend on these programs, creating ripple effects throughout the community. He also highlighted the significant burden this would place on nonprofit organizations, many of which rely on federal grants to provide essential services, including housing support for youth, teenagers, and at-risk populations. A disruption in funding could lead to reduced services, staff layoffs, or even the shutdown of critical programs that thousands in the county depend on.

Despite the gravity of the situation, Bullock noted that there is a temporary reprieve: judicial action has halted the freeze until Monday, allowing time for further legal and political intervention. He expressed hope that the courts and other government entities might weigh in to prevent the freeze from taking full effect. In the meantime, county staff are working around the clock to prepare for potential outcomes and minimize service interruptions. He assured that officials would continue to advocate for Nevada County’s needs and encouraged residents to stay informed as developments unfold. He concluded by inviting further questions and reinforcing the county’s commitment to protecting its most vulnerable residents from the fallout of these funding uncertainties.

Some of the more pressing matters in the basin that are federally funded include disaster relief, firefighting, public safety, infrastructure for roads and public transit, homelessness and housing services, emergency preparedness, community health services, and tribal funding for basic government services, among others. In the area, nonprofits that focus on conservation efforts could face challenges, along with the U.S. Forest Service, which relies heavily on federal funding.

“At the Conservation District, nearly three-quarters of our funding is from federal grants,” said Meghan Kelly, P.E., Principal Engineer/District Manager, Nevada Tahoe Conservation District. “We have 2 projects that are funded with primarily federal dollars that are supposed to be constructed this summer – Kahle Drive Complete Street and Marlette Creek Restoration. If federal funds are no longer available, both of these projects may never get built and we’d be at risk of losing the matching state and local funds. It is important for us to receive some clarity soon so we know how to proceed with contracts with private construction firms.”

However, Nevada Attorney General Aaron D. Ford, along with a coalition of 22 other attorneys general, are suing to stop the implementation of the pause. Ford said in a press release, “President Trump won the 2024 election and has the right to enact his policies within the bounds of the law… however, when he violates the Constitution or law, I will take any legal steps necessary to protect Nevadans.”

California Attorney General Rob Bonta was among the 22 attorneys.

U.S. District Judge Loren AliKhan temporarily blocked the pause by granting a “brief administrative stay” after a group of nonprofits and public health organizations filed a lawsuit. She asked the group to identify a specific harm caused by the freeze, giving them until Monday next week, otherwise she will vacate the administrative stay.

“President Trump’s freeze of critical federal funding for Nevada is creating chaos and confusion. Without any clear guidance from the White House, I’ve heard from Nevadans worried about accessing Medicaid, VA benefits, law enforcement funding, housing assistance, Meals on Wheels, and Head Start – just to name a few. This is an outrageous abuse of power and President Trump and his Republican allies need to step up and reverse course on this illegal action.” said Senator Catherine Cortez Masto.

Local public leaders and agencies, still reeling from the news, are unraveling what this could mean for the basin.

“The action by the Trump Administration today has taken our County government by surprise. It’s simply too soon to determine what impact it may have on the County’s services and programs.  Whatever the outcome of this action, we will do all we can to ensure our citizens receive the services they need,” said Brooke Laine, Supervisor, District V, El Dorado County.

U.S. Senator Alex Padilla (D-Calif.), member of the Senate Budget Committee, spoke out against the order.

“Americans in every corner of the country will feel the impact of Donald Trump’s unlawful directives. I am calling on my Republican colleagues to not confirm Russell Vought to be OMB Director until Trump reverses this reckless order,” said

The Sun will continue following the order. This article was written for press on Wednesday, Jan. 29. For more up-to-date reporting on the topic, visit our website.

Editor’s note: Reporters Katelyn Welsh and Zoe Meyer contributed to this article.

Eli Ramos is a reporter for Tahoe Daily Tribune. They are part of the 2024–26 cohort of California Local News Fellows through UC Berkeley.