The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 on Wednesday issued a memo to federal employees scrapping its original memorandum, according to a document viewed by The Wall Street Journal. The two-line memo sen

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 Trump administration reversed its policy to freeze grants and loans while officials evaluated whether spending met the president's priorities.

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

KEY TAKEAWAYS The White House has retracted a previous order that paused some grants, loans, and assistance the federal government awards to nonprofits and states.The prior order was supposed to take effect at 5 p.

President Donald Trump issued a memo ordering a freezing of federal funds. After lawsuits and a federal judge issuing an injunction, the memo was rescinded.

U.S. President Donald Trump on Wednesday said a temporary freeze on certain discretionary spending announced by his administration a day earlier was meant to give time to the government to identify instances of improper spending.