The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

President Donald Trump's administration appeared to abandon its proposed freeze on hundreds of billions of dollars in aid on Wednesday in the face of legal setbacks and widespread opposition, though officials said they still planned to cut funds for activities opposed by Trump.

Democrats declared victory for blunting Trump’s momentum while the White House insisted it isn’t backing down.

The White House rescinded an order today that froze trillions of dollars in federal grants and loans in an effort to purge the government of what President Trump has called a “woke” ideology. The directive had been temporarily blocked by a federal judge.

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 move comes after the order sparked widespread criticism and confusion. A federal district judge had temporarily paused the freeze.

We have a constitutional crisis,” Democratic Sen. Jeff Merkley said of Team Trump's latest scheme. It's worth appreciating what the label means.

Presidents from both parties, including Trump, have let the budget grow and grow. The White House is trying to make changes on its own.

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.