The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

The order sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington.

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier this week provoked a backlash.

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.

The new memorandum, just two sentences long, will allow agencies to continue their normal operations after uncertainty over the impact of the initial directive caused widespread chaos across government. It followed a temporary injunction by a federal judge that prevented the original Office of Management and Budget memo from taking effect.

The Trump administration ordered a temporary pause on federal grants, loans and financial assistance. What we know so far about the order.

That came after the first press briefing of the new Administration, which was dominated by questions about the freeze. White House press secretary Karoline Leavitt told reporters,

A sweeping White House order to freeze federal grants and allocations reflects a theory of presidential power that Donald Trump clearly endorsed during his 2024 campaign.