Today in one sentence: The White House rescinded an order freezing federal grants and loans after facing legal challenges and widespread confusion; the Trump administration offered buyouts to roughly 2 million federal workers; the Justice Department dropped its appeal of Judge Aileen Cannon’s ruling that special counsel Jack Smith was unlawfully appointed and had no authority to prosecute Trump; Defense Secretary Pete Hegseth revoked retired Gen. Mark Milley’s security detail and clearance, and ordered an inspector general investigation into his conduct as the former chairman of the Joint Chiefs of Staff; Trump cut federal funding for gender-affirming medical care for transgender individuals under 19; Trump plans to order the Pentagon and Homeland Security to prepare Guantanamo Bay as a detention facility for up to 30,000 undocumented migrants; and 45% of Americans approve of Trump's performance as president – down from 47% a week ago.

1/ The White House rescinded an order freezing federal grants and loans after facing legal challenges and widespread confusion. The directive, issued Monday by the Office of Management and Budget, instructed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance,” but was blocked by a federal judge on Tuesday. Chuck Schumer said, “Americans fought back and Donald Trump backed off.” However, White House press secretary Karoline Leavitt insisted, “This is NOT a rescission of the federal funding freeze,” clarifying that Trump’s broader efforts to curb certain spending remained intact. The administration framed the freeze as a way to eliminate funding for what it called “woke ideologies,” with Trump defending the move as necessary to “get the most out of every single tax dollar for our great citizens.” The order briefly disrupted funding for Medicaid, housing, and other public services, prompting lawsuits from multiple states. Last year the federal government awarded more than $1.2 trillion in grants, and another $2 trillion in loans. (New York Times / Washington Post / NBC News / CNN / Bloomberg / Wall Street Journal / CNBC / Axios)

  • EARLIER: A federal judge temporarily blocked the Trump administration from enforcing a directive to freeze federal grants, loans, and assistance programs, citing concerns over its legality and potential harm to communities. Nonprofits and 22 state attorneys general sued, calling the policy unconstitutional. (Bloomberg)

  • A second federal judge signaled he would block Trump’s federal spending freeze, citing White House contradictions on whether the policy remains in effect. The administration rescinded an OMB memo on the freeze, but courts remain skeptical. A ruling on a broader restraining order is expected soon. (Politico)

  • Republican Rep. Rich McCormick defended the White House’s federal aid freeze, saying some kids should work instead of receiving free school meals. He claimed that federal aid discourages self-sufficiency and suggested teens work at McDonald’s or Burger King. (NBC News / USA Today / New York Times)

  • Secretary of State Marco Rubio approved a waiver allowing some humanitarian aid to continue despite the Trump administration’s foreign aid freeze. The memo permitted “lifesaving” assistance, such as food, medicine, and shelter, but excluded programs involving abortion, gender diversity, or transgender surgeries. (Washington Post)

2/ The Trump administration offered buyouts to roughly 2 million federal workers, allowing them to resign while receiving pay and benefits through September. The program, described as a “deferred resignation,” requires employees to opt in by replying “resign” to an email with the subject line “Fork in the Road.” Officials expect 5-10% of workers to accept, estimating $100 billion in savings. White House press secretary Karoline Leavitt framed the move as a response to remote work, saying “If they don’t want to work in the office and contribute to making America great again, then they are free to choose a different line of work.” (NBC News / New York Times / Axios / CNBC / Washington Post)

  • Elon Musk allies now occupy top roles at the Office of Personnel Management, the federal agency overseeing government hiring. Appointees include individuals with ties to Musk’s companies — xAI, Neuralink, and the Boring Company— as well as Palantir and the NRA. Some new senior officials have limited experience, including a 21-year-old former Palantir employee and a recent high school graduate. Experts warn the staffing shakeup could accelerate Trump’s push to purge civil servants, with one calling the changes “reminiscent of Stalin.” The administration is reportedly using AI and data analysis to identify employees for reclassification under Schedule F, making them easier to fire. (WIRED)

3/ The Justice Department dropped its appeal of Judge Aileen Cannon’s ruling that special counsel Jack Smith was unlawfully appointed and had no authority to prosecute Trump. the decision ensures that charges against Trump’s former co-defendants, Walt Nauta and Carlos De Oliveira, cannot be revived. Cannon dismissed the indictment in July, breaking with legal precedent by ruling that Attorney General Merrick Garland lacked the authority to appoint Smith. While Smith initially appealed, he later dropped Trump from the case after the November election, citing DOJ policy against prosecuting a sitting president. With the appeal abandoned, the classified documents investigation against Trump and his associates is effectively over. The decision ensures the case will not be revived against Trump and his associates, and raises questions about whether Smith’s final report will be made public. Cannon previously blocked the DOJ from sharing the report with Congress, and Trump’s DOJ is expected to keep it sealed. (Washington Post / ABC News / New York Times / Politico / CNN / CNBC / CBS News / Bloomberg / Axios / Associated Press)

  • Trump appealed his 34 felony convictions for orchestrating an illegal conspiracy to influence the 2016 presidential election by falsifying business records. His lawyers claims the prosecution set a “dangerous precedent.” (Associated Press / Politico)

4/ Defense Secretary Pete Hegseth revoked retired Gen. Mark Milley’s security detail and clearance, and ordered an inspector general investigation into his conduct as the former chairman of the Joint Chiefs of Staff. Trump previously accused Milley of treason for reassuring Chinese officials that Trump wasn’t planning to attack them, and it was “an act so egregious that, in times gone by, the punishment would have been DEATH.” Milley’s call was authorized by then Defense Secretary Mark Esper. More recently, Milley called Trump a “fascist to the core” and “the most dangerous person to this country.” Hegseth’s chief of staff, Joe Kasper, claimed that “undermining the chain of command is corrosive to our national security” and “restoring accountability is a priority for the Defense Department under President Trump’s leadership.” In one of his last acts in office, Biden issued a preemptive pardon for Milley, citing concerns over potential politically motivated prosecutions. Still, the inquiry could lead to a downgrade in Milley’s military rank, a rare post-retirement punishment. Trump has also revoked security protections for Mike Pompeo, John Bolton, and Anthony Fauci. (Washington Post / CNN / The Guardian / Wall Street Journal)

5/ Trump cut federal funding for gender-affirming medical care for transgender individuals under 19. The executive order directs agencies to restrict access to puberty blockers, hormone therapy, and surgeries by cutting Medicaid and military insurance coverage. “Countless children soon regret that they have been mutilated and begin to grasp the horrifying tragedy that they will never be able to conceive children of their own or nurture their children through breastfeeding,” the executive order says. It also instructs the Department of Health and Human Services to reassess existing guidelines and restrict funding for hospitals and medical schools that provide such care. The order follows Trump’s recent actions to ban transgender troops from serving openly in the military, and for the federal government to only recognize two sexes, male and female. (Wall Street Journal / Associated Press / ABC News / Bloomberg / New York Times / NPR / Washington Post)

poll/ 45% of Americans approve of Trump’s performance as president – down from 47% a week ago – with 70% opposing renaming the Gulf of Mexico, 59% rejecting his birthright citizenship plan, and 48% backing his immigration policies. (Reuters)

The midterm elections are in 643 days.

✏️ Notables.

Quick hits of lesser importance.

  1. Trump plans to order the Pentagon and Homeland Security to prepare Guantanamo Bay as a detention facility for up to 30,000 undocumented migrants. He called the base a place to “contain the worst criminal illegal aliens” who cannot be deported. The military was reportedly unaware of the plan, which would require new infrastructure. (Wall Street Journal / Associated Press / Washington Post / Axios / NBC News)

  2. Trump signed the Laken Riley Act, requiring the detention of undocumented immigrants accused of certain crimes. The law passed with bipartisan support, including 46 House Democrats and 12 Senate Democrats. It mandates ICE to detain migrants charged with burglary, theft, larceny, or shoplifting, before conviction. Trump called the law a “landmark” measure that would “save countless innocent American lives.” Critics argue it undermines due process, while ICE warns enforcement could cost up to $27 billion in its first year. (NBC News / New York Times / ABC News / The Hill)

  3. Trump revoked Biden’s 18-month extension of Temporary Protected Status for over 600,000 Venezuelans, which would have protected Venezuelans until October 2026. The decision immediately reverts TPS protections to their original expiration dates – April and September 2025 – unless Homeland Security Secretary Kristi Noem extends them. (Associated Press / New York Times / The Guardian / USA Today / Reuters)

  4. A federal judge sentenced former Sen. Robert Menendez to 11 years in prison for bribery, extortion, and acting as a foreign agent for Egypt. Menendez, once chairman of the Senate Foreign Relations Committee, was convicted of trading political favors for cash, gold bars, and luxury gifts. Prosecutors called it “possibly the most serious” Senate corruption case ever. (New York Times / Bloomberg / Associated Press / NBC News)

  5. Trump and Meta settled a lawsuit over his Facebook and Instagram accounts being suspended following the Jan. 6 attack, with Meta agreeing to pay $25 million, mostly for Trump’s presidential library. Trump repeatedly used the platforms to make false claims that he won the 2020 election and alleged widespread election fraud. Meta admitted no wrongdoing, and the lawsuit was one of several Trump had filed against social media companies. (Wall Street Journal)

  6. Trump officials are discussing tighter restrictions on Nvidia’s H20 chips for China, though no decision is imminent. Nvidia warns further curbs could strengthen China’s AI sector and hurt U.S. firms. The news sent Nvidia shares down nearly 7%. (Bloomberg)

  7. The Federal Reserve held interest rates steady despite Trump “demanding” the central bank lower them. Fed officials voted unanimously to maintain benchmark rate in target range of 4.25%-4.5%, noting that “inflation remains somewhat elevated.” Consumer prices averaged 2.9% higher in December than a year earlier — nearly a percentage point higher than the Fed’s target rate of 2%. (Bloomberg / NBC News / ABC News)

  8. Trump blamed Fed Chair Jerome Powell for inflation, criticizing the central bank for keeping interest rates steady. He claimed the Fed’s focus on climate and diversity policies worsened the economy and pledged to cut regulations to lower costs. Powell did not respond to Trump’s remarks. (CNBC)

  9. Trump will sign an executive order expanding school choice, directing federal agencies to allow public funds for private and religious schools. (CNN / NBC News)

Four years ago today: Day 10: "Wake-up call."
Five years ago today: Day 1105: Public interest.
Six years ago today: Day 740: Regime survival.
Seven years ago today: Day 375: Stepping aside.
Eight years ago today: Day 10: Embarrassment.