The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

The Trump’s administration’s Office of Management and Budget released a new memo Wednesday rescinding a controversial memo issued late Monday that froze a wide swath of federal financial assistance, which had paralyzed many federal programs and caused a huge uproar on Capitol Hill.

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.

Officials said the decision to halt loans and grants was necessary to ensure spending complies with recent executive orders.

WASHINGTON (Reuters) - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday.

Vaeth, the acting director of the Office of Management and Budget, said there would be a "temporary pause" in the "disbursement of all Federal financial assistance," effective from Tuesday at 5 p.m."This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President's priorities,