WASHINGTON (AP) — President Donald Trump’s budget office on Wednesday rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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 freeze on hundreds of billions of dollars of federal grants had been temporarily halted by a judge on Tuesday.

The White House rescinded an order that froze federal grants, loans and other financial assistance, generating widespread confusion among governors, state agencies and non profits over the future of their financial support.

The Trump administration has rescinded his previous order to freeze trillions of dollars of grants and loans. The White House Office of Management and Budget retracted its order from Monday in a memo sent out Wednesday, according to documents obtained by NBC News.

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The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

The White House rescinded an order today that froze trillions of dollars in federal grants and loans in an effort to purge the government of what President Trump has called a “woke” ideology. The directive had been temporarily blocked by a federal judge.

Donald Trump's administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.

Fox News senior White House correspondent Jacqui Heinrich reports on the Trump administration’s decision to rescind its freeze on federal grants on ‘America Reports.'

The full extent of the order was not immediately clear, but the directive sent to government agencies on Monday threatened to paralyze a vast swath of federal programs.