The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 on Wednesday issued a memo to federal employees scrapping its original memorandum, according to a document viewed by The Wall Street Journal. The two-line memo sen

The Trump administration’s push for a sweeping pause on federal grants and loans totaling potentially trillions of dollars is on hold for now, on the order of a federal judge.

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 reversed its policy to freeze grants and loans while officials evaluated whether spending met the president's priorities.

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

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

The White House on Wednesday rescinded its order freezing the disbursement of all federal grants and loans, which had created widespread confusion across Washington and in states.

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.