The Trump administration has rescinded a plan for a sweeping pause on federal grants and loans totaling potentially trillions of dollars after it was temporarily blocked by a federal judge. The push set off panic and confusion across the country and raised the possibility of a constitutional crisis over control of taxpayer money

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.

President Donald Trump’s budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier this week provoked a backlash.

The White House formally rescinded a controversial memo that had ordered a freeze on federal grants and loans. The freeze, which had been set to take effect late Tuesday afternoon, was paused Tuesday by a federal judge to give her time to consider arguments challenging its legality.

A temporary freeze imposed briefly this week by the White House on federal grants and loans left many students wondering about the impact to the FAFSA form used to apply for financial aid.

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The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday.