The move comes after the order sparked widespread criticism and confusion. A federal district judge had temporarily paused the freeze.

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.

WASHINGTON (AP) — President Donald Trump’s budget office on Wednesday rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to two people familiar with the matter.

Two-sentence memo ends days-long threats that sent officials, agencies and nonprofits into tailspin over ‘unconstitutional’ threats

The Monday evening order from the White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations.

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.

A federal judge has issued an administrative stay, pausing the start date of the Trump administration’s federal funding freeze until Monday. The freeze was scheduled to take effect Tuesday at 5 p.m. ET.

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