A memo from the White House Office of Management and Budget reportedly ordered a pause of federal grants, loans and other financial-assistance programs.

The temporary moratorium on some federal financial assistance programs was set to take effect Tuesday, setting off widespread confusion.

President Donald Trump’s budget office rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to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

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.

The directive, which a federal judge has temporarily blocked from going into effect, has unleashed furious reactions from lawmakers, mostly Democrats and a few Republicans. Many have cited the US constitution's provision saying that "the power of the purse" lies with the Congress rather than the executive branch.

President Donald Trump’s administration issued a memo Monday ordering widespread federal assistance to be temporarily paused, as Trump and his allies have argued he can block government funds that Congress has already authorized, despite a federal law forbidding it.

Trump in his first days in office has leaned in on the idea that OPEC+, the alliance of oil producing nations, holds the key to ending the war by reducing oil prices.

Trump spoke by video from the White House to the annual summit in Davos, Switzerland, on his third full day in office.

The freeze – which could resume later – has left organizations and government agencies on the local, state and federal levels in flux.

The temporary moratorium on some federal financial assistance programs was set to take effect Tuesday, setting off widespread confusion.

Press Secretary Karoline Leavitt said the medical aid website would be back online "shortly", after a sweeping memo ordered federal agencies to freeze funding.

Karoline Leavitt , the youngest person to serve as White House press secretary, made her debut in the briefing room Tuesday, saying that podcasters and social media influencers could apply to participate in future briefings.