The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

President Donald Trump’s budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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

The Trump administration ordered a temporary pause on federal grants, loans and financial assistance. What we know so far about the order.

President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country

Fox News senior White House correspondent Jacqui Heinrich reports on the Trump administration’s decision to rescind its freeze on federal grants on ‘America Reports.'

While CLASS, Healthy Living for All, will be greatly impacted as an agency by the Trump administration's temporary pause on grant, loan and other financial assistance programs at the Office of Management and Budget,