The White House Office of Management and Budget has rescinded the federal aid freeze, according to a memo obtained by CNN from a Trump administration official.

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

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.

Donald Trump's administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.

The White House formally rescinded a controversial memo that had ordered a freeze on federal grants and loans. The freeze, which had been set to take effect late Tuesday afternoon, was paused Tuesday by a federal judge to give her time to consider arguments challenging its legality.

Donald Trump’s administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.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 Trump administration reversed its policy to freeze grants and loans while officials evaluated whether spending met the president's priorities.

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

NH officials and nonprofit leaders scrambled for clarity after President Donald Trump’s Office of Management and Budget issued a memo ordering a freeze on nearly all federal financial assistance programs.