The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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

President Donald Trump’s budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to two people familiar with the matter.

The freeze on hundreds of billions of dollars of federal grants had been temporarily halted by a judge on Tuesday.

The Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

The White House budget office Wednesday rescinded the federal aid freeze, according to multiple media reports citing an administration memo.

The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday. (Reporting by Jeff Mason and Jasper Ward) Copyright 2025 Thomson Reuters.