'Memo is rescinded': Budget office quietly pulls back order freezing federal funds
U.S. President Donald Trump speaks during a House Republican members conference meeting in Trump National Doral resort, in Miami, Florida, U.S. January 27, 2025. REUTERS/Elizabeth Frantz

The Trump administration quietly rescinded an order to freeze all federal grants and loans after a judge temporarily blocked it.

Democratic attorneys general from 22 states and the District of Columbia, as well as a coalition of nonprofits, public health organizations and small businesses, had challenged the order that caused widespread confusion Tuesday, and the Office of Management and Budget rescinded the the order Wednesday in a two-sentence memo.

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"OMB Memorandum M-25-13 is rescinded," states the memo signed by acting director Matthew Vaeth. "If you have any questions about implementing the President's Executive Orders, please contact your agency General Counsel."

The order by U.S. District judge Loren AliKhan ensured that federal agencies, states and other organizations still received funding approved by Congress beyond a previously set deadline of Tuesday at 5 p.m. ET.