The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.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 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The Trump administration has rescinded an order attempting to put a widespread freeze on federal aid spending. NBC News' Sahil Kapur reports from Capitol Hill on the order and the initial confusion it caused.

The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday. The order on the federal grant freeze sparked widespread confusion among Americans and organizations that rely on Washington and their financial lifeline.

President Donald Trump issued a memo ordering a freezing of federal funds. After lawsuits and a federal judge issuing an injunction, the memo was rescinded.

U.S. President Donald Trump on Wednesday said a temporary freeze on certain discretionary spending announced by his administration a day earlier was meant to give time to the government to identify instances of improper spending.