The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

President Donald Trump’s budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to two people familiar with the matter.

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

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

The full extent of the order was not immediately clear, but the directive sent to government agencies on Monday threatened to paralyze a vast swath of federal programs.

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.

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.

WASHINGTON (Reuters) - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday.

The Vermont senators and representative gave a joint statement expressing their concern of this "authoritarian" decision to freeze federal grants.

White House press secretary Karoline Leavitt vehemently defended the administration’s sweeping freeze on federal aid, arguing Tuesday in her first press briefing that it was critical to scrutinize the scope of the government’s spending.

The acting budget director wants all federal agencies to ensure that their grants and programs aligned with the new Trump administration's priorities.