The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 issued a memo sent to federal employees Wednesday scrapping its original order, according to a document viewed by The Wall Street Journal. The initial order was se

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

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

One day after the White House announced a temporary pause on federal loans and grants, it rescinded the freeze.

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,