The White House Office of Management and Budget on Wednesday rescinded a memo that froze federal grants and loans and created widespread confusion this week.

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.

The Trump administration has rescinded an order attempting to put a widespread freeze on federal aid spending. NBC News' Sahil Kapur reports from Capitol Hill on the order and the initial confusion it caused.

The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, the White House confirmed on Wednesday.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 order on the federal grant freeze sparked widespread confusion among Americans and organizations that rely on Washington and their financial lifeline.

President Donald Trump issued a memo ordering a freezing of federal funds. After lawsuits and a federal judge issuing an injunction, the memo was rescinded.

U.S. President Donald Trump on Wednesday said a temporary freeze on certain discretionary spending announced by his administration a day earlier was meant to give time to the government to identify instances of improper spending.