President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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

The White House Office of Management and Budget has rescinded the federal aid freeze, according to a memo obtained by CNN from a Trump administration official.

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.

Here's where things stand with funding for SBA loans, federal contracts, and other programs as White House doubles down on federal freeze.

The White House formally rescinded a controversial memo that had ordered a freeze on federal grants and loans. The freeze, which had been set to take effect late Tuesday afternoon, was paused Tuesday by a federal judge to give her time to consider arguments challenging its legality.

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

FAFSA applications for the 2024-2025 academic year are due June 30, after which the application will be unavailable on the student aid website. Colleges can have their own deadline and often require applications be submitted before the federal deadline in the summer.

The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday.