Withdrew his order freezing federal grants, states the recent memo from the budget office.
The sudden policy reversal was prompted by the initial directive's disruption, as various government departments struggled to determine which parts of the government it applied to in the first place.
Medicaid access was temporarily cut off, prompting warnings that lives were at risk as critical funding for vaccines and other essential health services was temporarily suspended, while the White House struggled to clarify the implications of the halt.
The Office of Management and Budget issued an order to government officials on Wednesday - approximately 20 hours after the initial order - stating that "OMB memorandum M-25-13 is being revoked."
The original order instructed federal agencies to temporarily halt all activities connected to fulfilling or disbursing federal financial aid obligations.
Pause federal grants, loans, and other financial aid, a combined total of trillions of dollars.
Twenty-two states and the nation's capital, Washington, D.C., quickly challenged the order in court and on Tuesday evening, a district judge imposed an immediate halt on it.
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White House press secretary Karoline Leavitt said on Tuesday that there was confusion among reporters about what was affected, but then she found it challenging to answer fundamental questions about how the funding halt would function and who would be impacted.
Senior Trump officials have stated that critical funding streams such as Medicare, Social Security, and veterans' care are not expected to be impacted.
They mentioned it was a short-term solution, as the financial resources were being reassessed.
The decision received criticism from both Democrats and a few Republicans.
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