WASHINGTON — President Donald Trump’s budget office on Wednesday rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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's abrupt pause on trillions of dollars in federal grants and loans could cause widespread program disruption in FL.

The White House lifted its freeze on federal funding Wednesday, a move that has come as a relief to many organizations that rely on loans and grants to continue their operations.

The first major domestic policy reversal of the Republican president's new term came after one federal judge had temporarily blocked the freeze and before another judge was due to

President Donald Trump‘s administration sought to tamp down confusion over Medicaid funding in the wake of Office of Management and Budget director Matthew Vaeth’s memorandum pausing federal grant funding.

White House press secretary Karoline Leavitt vehemently defended the administration’s sweeping freeze on federal aid, arguing Tuesday in her first press briefing that it was critical to scrutinize the scope of the government’s spending.

The Trump Administration has ordered a pause on all federal grants and loans, which will take effect at 3 p.m. MT/ 4 p.m. CT on Tuesday, Jan. 28.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill

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