The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.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 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The White House budget office on Wednesday rescinded an order freezing federal grants after the administration’s move to halt spending earlier this week provoked a backlash.

The order sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington.

The order is "a potential five-alarm fire" for organizations that serve communities, nonprofit group executive says.

The Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

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.