The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

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

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier this week provoked a backlash.

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.

Donald Trump's administration has rescinded its sweeping directive that sought to pause potential trillions in loans, grants, and financial assistance, according to a memo obtained by ABC News.