The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 freeze on hundreds of billions of dollars of federal grants had been temporarily halted by a judge on Tuesday.

The White House budget office on Wednesday rescinded an order freezing federal grants after the administration’s move to halt spending earlier this week provoked a backlash.

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.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

Earlier this week, a federal judge in Washington issued a separate temporary restraining order against OMB’s instructions, minutes before the funding freeze had been set to take effect. The order, which is set to expire Monday, prompted the White House to walk back OMB’s memo, and DOJ has since asked the court to dismiss the case.

The White House is considering challenging the constitutionality of a 50-year-old law limiting the president’s control over federal spending, easing the firing of civil servants, curbing pay and reining in independent agencies,

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