The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

President Donald Trump's administration appeared to abandon its proposed freeze on hundreds of billions of dollars in aid on Wednesday in the face of legal setbacks and widespread opposition, though officials said they still planned to cut funds for activities opposed by Trump.

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

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

Trump's budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion

An internal OMB document shows that it is official administration policy to block funding to provoke a constitutional challenge.

Two-sentence memo ends days-long threats that sent officials, agencies and nonprofits into tailspin over ‘unconstitutional’ threats

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 Office of Management and Budget (OMB) is walking back the federal funding freeze memo that set off a day of chaos and confusion on Tuesday up until a judge paused the order right before it was set to take effect.