U.S. President Donald Trump on Wednesday will sign an executive order on school choice that would also end "funding for public schools that support critical race theory and other divisive measures in their curriculums,

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.

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.

The order is "a potential five-alarm fire" for organizations that serve communities, nonprofit group executive says.

The Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

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

The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday. (Reporting by Jeff Mason and Jasper Ward) Copyright 2025 Thomson Reuters.

White House press secretary Karoline Leavitt vehemently defended the administration’s sweeping freeze on federal aid, arguing Tuesday in her first press briefing that it was critical to scrutinize the scope of the government’s spending.