The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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President Donald Trump's budget office on Wednesday rescinded an memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

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

The OMB memo had directed federal agencies to pause grants and loans pending a review of compliance with the agenda of President Donald Trump.

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.

A federal judge temporarily blocked President Donald Trump's freeze of federal funding. Will Medicare, Social Security or Medicaid be affected? Here's what to know.