White House rescinds order freezing federal grants and loans

The White House says it has rescinded an order authorising a federal freeze on hundreds of billions of dollars in grants and loans.

It comes after a judge temporarily halted the order on Tuesday, on the same day it was due to come into effect.

The order had been paused until next Monday, after a legal challenge by a group of organisations representing grant recipients.

A letter dated 29 January simply stated "OMB Memorandum M-25-13 is rescinded."

It is unclear what has prompted the apparent U-turn.

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

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

But the order prompted widespread confusion about which agencies and programmes would be impacted.

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