WASHINGTON — President Donald Trump's budget office on Wednesday rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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

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 that rely on trillions of dollars from Washington and left the White House scrambling to explain what would and wouldn't be subject to a pause in funding.

The people, speaking on the condition of anonymity to discuss internal guidance, confirmed that the OMB pulled the order Wednesday in a two sentence notice to agencies and departments.

Read more here

What began as a desperate hunt for Shannan Gilbert in the marshes near Gilgo Beach became, in three astonishing days in December 2010, the unmasking of a possible serial killer. NewsdayTV's Doug Geed has more.  Credit: Newsday/A. J. Singh; File Footage; Photo Credit: SCPD

'We had absolutely no idea what happened to her' What began as a desperate hunt for Shannan Gilbert in the marshes near Gilgo Beach became, in three astonishing days in December 2010, the unmasking of a possible serial killer. NewsdayTV's Doug Geed has more.

SUBSCRIBE

Unlimited Digital AccessOnly 25¢for 6 months

ACT NOWSALE ENDS SOON | CANCEL ANYTIME