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.

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.

The order sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington.

U.S. President Donald Trump will sign an executive order on Wednesday "addressing school choice, ending funding for public schools that support critical race theory and other divisive measures in their curriculums,

Donald Trump's administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.

The White House formally rescinded a controversial memo that had ordered a freeze on federal grants and loans.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 reversed its policy to freeze grants and loans while officials evaluated whether spending met the president's priorities.

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

NH officials and nonprofit leaders scrambled for clarity after President Donald Trump’s Office of Management and Budget issued a memo ordering a freeze on nearly all federal financial assistance programs.