White House reverses order freezing federal grants and loans

The White House says it has rescinded an order authorizing the federal freeze of hundreds of billions of dollars in grants and loans.

This decision comes after a judge temporarily halted the order on Tuesday, the same day it was set to take effect.

It is unclear what prompted the apparent turnaround.

The acting head of the White House budget office had instructed agencies to temporarily halt all activities related to the obligations or disbursement of all federal financial assistance.

The office said the move was intended to give the new administration time to assess which grants and loans were consistent with their agenda.

But the order caused widespread confusion about which agencies and programs would be affected. (A2 Televizion)