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

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.

U.S. President Donald Trump will sign an executive order on Wednesday "addressing school choice, ending funding for public schools that support critical race theory and other divisive measures in their curriculums,

Donald Trump's administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.

Donald Trump’s administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.

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