President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier this week provoked a backlash.

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

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.

January 28, 2025. Donald Trump's White House ordered a pause in all federal grants and loans starting on Tuesday, a mo

A temporary freeze imposed briefly this week by the White House on federal grants and loans left many students wondering about the impact to the FAFSA form used to apply for financial aid. President Donald Trump's administration on Wednesday rescinded the memo freezing spending.