Officials said the decision to halt loans and grants was necessary to ensure spending complies with recent executive orders.

The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

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 full extent of the order was not immediately clear, but the directive sent to government agencies on Monday threatened to paralyze a vast swath of federal programs.

The White House on Wednesday issued a memo to federal employees scrapping its original order, according to a document viewed by The Wall Street Journal. The two-line memo sent jus

The Trump administration ordered a temporary pause on federal grants, loans and financial assistance. What we know so far about the order.

White House press secretary Karoline Leavitt confirmed the pause on federal financial assistance will not include food stamps, Social Security, or Medicare and welfare benefits.