Officials said the decision to halt loans and grants was necessary to ensure spending complies with recent executive orders.

The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country

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 White House on Wednesday issued a memo to federal employees scrapping its original order, according to a document viewed by The Wall Street Journal. The two-line memo sent jus

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

White House press secretary Karoline Leavitt confirmed the pause on federal financial assistance will not include food stamps, Social Security, or Medicare and welfare benefits.

Trump issued federal funding freeze then rescinded it. Opposition says a freeze would risk serious damage to healthcare, education and public safety.