The move comes after the order sparked widespread criticism and confusion. A federal district judge had temporarily paused the freeze.

The order that froze trillions of dollars of federal grants and loans was published without vetting by key officials in the White House.

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

WASHINGTON (AP) — President Donald Trump’s budget office on Wednesday rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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 reversed its policy to freeze grants and loans while officials evaluated whether spending met the president's priorities.

Federal agencies have been instructed to assess their financial aid programs to determine which ones might be impacted.

A White House order to freeze federal grants reflects a theory of presidential power that Donald Trump clearly endorsed during his 2024 campaign. The approach was further outlined in the Project 2025 governing treatise that candidate Trump furiously denied was a blueprint for his second administration.

A U.S. judge on Wednesday said he was inclined to temporarily block the Trump administration from pausing federal loans, grants and other financial assistance, intervening at the behest of Democratic state attorneys general amid confusion over White House spending policy.

President Trump’s announcement of a freeze on federal loans and grants has left officials through Maryland, Virginia and the District scrambling to understand the impact.