President Donald Trump’s budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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

One day after the White House announced a temporary pause on federal loans and grants, it rescinded the freeze.

State, local agencies and other groups that receive federal grants were trying to understand the depths of the order's impact when it was walked back.

President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

Illinois was one of 22 Democratic-led states that filed suit Tuesday asking a federal court to block the sudden pause on funding, which was announced Monday evening. The freeze threatened to hold up trillions of dollars in funding for basic government functions like health care,

Senate Minority Leader Chuck Schumer (D-N.Y.) is holding a press conference Wednesday morning to respond to the Trump administration’s federal grant freeze. The White House directed federal agencies on Monday evening to pause the disbursement of loans and grants while the government conducts a review to ensure spending aligns with President Trump’s agenda.