WASHINGTON — The Trump administration's budget office on Wednesday rescinded a controversial memo that froze spending on federal grants, just 48 hours after it created considerable confusion and prompted legal challenges across the country, according to reports from TIME and Voice of America.

The memo issued by the White House Office of Management and Budget on Monday evening caused uncertainty regarding essential financial lifelines for states, schools, and organizations that rely on federal funding. The White House was left scrambling to clarify which programs would be affected by the funding pause, which was meant to support a series of executive orders targeting spending in certain areas. The order was to enforce compliance with executive directives relating to topics such as diversity and climate change.

Administration officials confirmed that the memo was revoked in a brief two-sentence notice to federal agencies. Despite the rescindment, officials emphasized that the underlying executive orders remain in effect. Agencies were previously directed to respond to questions aimed at evaluating whether programs promoted certain ideologies, including gender issues and abortion.

The announcement of the freeze was slated to take effect at 5 PM Tuesday but was legally challenged. A federal judge stayed the order following an emergency hearing requested by nonprofit groups reliant on these federal grants, and additional lawsuits from Democratic state attorneys general were also anticipated.

Although officials maintained that critical programs assisting Americans, like Medicare and Social Security, would remain unharmed, there was initial ambiguity about whether Medicaid would be included. This situation left many public service organizations, such as Meals on Wheels and Head Start, concerned about potential funding interruptions, which could result in layoffs and service delays.

Democratic leaders expressed their relief following the decision to rescind the freeze, calling it a triumph for public advocacy. Senator Patty Murray stated, "This is an important victory for the American people whose voices were heard after massive pressure from every corner of this country," while further criticizing the administration's handling of the matter as chaotic and harmful.

Senate Democratic leader Chuck Schumer echoed these sentiments: "Americans fought back, and Donald Trump backed off." He pointed out the degree to which public opinion and activism played a crucial role in reshaping the government's fiscal approach.

For more details, visit the Associated Press or read coverage from Le Monde.