More confusion as White House rescinds federal funding freeze

ByHeather Grubola and Nydia Han WPVI logo
Thursday, January 30, 2025
More confusion as White House rescinds federal funding freeze
More confusion as White House rescinds federal funding freeze

PHILADELPHIA (WPVI) -- The White House has now rescinded a directive that froze trillions of dollars in federal grants and loans. That order sparked mass confusion and legal challenges, accusing the Trump administration of violating the law.

The review to eliminate spending on so-called "woke" ideologies will go on, and that's not easing concerns. In fact, many people remain terrified that the critical programs they depend on could still get cut off.

PASSi, based in East Oak Lane, serves hundreds of mostly Asian seniors throughout the greater Philadelphia five-county region.

"PASSI stands for Penn Asian Senior Services," said CEO Ken Yang.

RELATED: Judge signals he will block Trump administration from freezing funding

It provides daily on-site programming, home care and social services, helping anyone in the area apply for energy assistance, SNAP benefits, and more.

Every program is critically dependent on federal dollars.

"It's really hard to overstate," he said, "they really make the operations that we take on behalf of our residents, our community, our clients possible."

Yang said he was already in the process of figuring out how to triage funds to stretch them as long as needed.

Minutes after our interview, ABC News obtained a memo showing the Trump administration had rescinded the federal funding freeze.

The policy reversal follows a tumultuous 48 hours as lawmakers and citizens expressed concern that funding for health care, law enforcement, disaster aid, and infrastructure spending could be paused or delayed.

"Because they are fearful, they're worried. Will their seniors be able to remain in their housing? Will their Medicaid funding continue," said Congresswoman Madeleine Dean.

Less than 24 hours after the policy was revealed, the White House attempted to clarify it, saying in another memo that programs that provide direct benefits to Americans, such as Social Security, Medicare, and SNAP benefits would be excluded from the freeze.

PASSI said no matter what happens next it has an emergency plan for its programming.

"And providing those services for as long as possible," said Yang.

Before the freeze was rescinded, a federal judge had already issued a stay of the freeze order. That was to remain in effect until at least next Monday, Feb. 3 at 5 p.m.

Again, the programs that could be impacted provide meals, childcare, rental assistance, and help with heating bills.

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