President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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.

In her first White House press conference, press secretary Karoline Leavitt claimed that DOGE had identified $50 million for condoms in Gaza.

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

The Trump administration’s push for a sweeping pause on federal grants and loans totaling potentially trillions of dollars is on hold for now, on the order of 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Donald Trump's administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.

The White House memo issued late Monday led to chaos and confusion as to what programs would be impacted by the freeze.

The Trump administration said on Tuesday it is offering hefty financial incentives for nearly all civilian full-time federal workers to resign as part of plans to drastically shrink the size of the government.

At least three U.S. lawmakers said on Tuesday healthcare providers were blocked from the Medicaid payment portal after the Trump administration announced a federal funding pause, even as the White House said the program was exempted.

Press secretary Karoline Leavitt said President Trump would open the briefing room to bloggers, podcasters and social-media influencers.

President Donald Trump claimed that his administration had “identified and stopped $50 million being sent to Gaza to buy condoms for Hamas.”