President Donald Trump’s budget office has rescinded an order freezing spending on federal grants, less than two days after it sparked widespread confusion and legal challenges across the country, according to two people familiar with the matter.

That came after the first press briefing of the new Administration, which was dominated by questions about the freeze. White House press secretary Karoline Leavitt told reporters,

The Trump administration has put a hold on all federal financial grants and loans, affecting tens of billions of dollars in payments.

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.