The order sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington.

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

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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