President Trump's top budget office has directed agencies to pause federal loans and grants so the administration can review them.

The Trump administration has withdrawn a memo that caused significant issues by canceling federal loans and grants—though a spokesperson clarified that this does not mean the decision itself has been reversed.

A White House order to freeze federal grants reflects a theory of presidential power that Donald Trump clearly endorsed during his 2024 campaign. The approach was further outlined in the Project 2025 governing treatise that candidate Trump furiously denied was a blueprint for his second administration.

The Trump administration late Monday directed federal agencies to pause the disbursement of loans and grants while the government conducts a review to ensure spending aligns with President Trump’s

President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country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 move comes after the order sparked widespread criticism and confusion. A federal district judge had temporarily paused the freeze.

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