President Donald Trump’s budget office has rescinded a memo freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country.

The White House budget office on Wednesday rescinded an order freezing federal grants, according to a copy of a new memo obtained by The Washington Post, after the administration’s move to halt spending earlier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

The OMB memo had directed federal agencies to pause grants and loans pending a review of compliance with the agenda of President Donald Trump.

The White House said on Wednesday it was prepared to fight in court after a U.S. judge temporarily blocked part of the Trump administration's sweeping directive to pause federal loans, grants and other financial assistance.

The White House rescinded an order today that froze trillions of dollars in federal grants and loans in an effort to purge the government of what President Trump has called a “woke”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 White House is considering challenging the constitutionality of a 50-year-old law limiting the president’s control over federal spending, easing the firing of civil servants, curbing pay and reining in independent agencies,

The first major domestic policy reversal of the Republican president's new term came after one federal judge had temporarily blocked the freeze and before another judge was due to