WASHINGTON -- The White House is pausing federal grants and loans starting Tuesday as President Donald Trump's administration begins an across-the-board ideological review of its spending, causing confusion and panic among organizations that rely on Washington for their financial lifeline.

The back-and-forth over the freeze order has many LI nonprofits bewildered over whether their federal funds will be cut.

A second federal judge on Friday ordered a temporary pause in Trump administration efforts to freeze federal funding in the latest twist over the spending of trillions of dollars in grants and loans.

“The funding pause directed by the Jan. 27, 2025, OMB memorandum only applies to discretionary grants at the Department of Education," said Madi Biedermann, spokesperson for the U.S. Department of Education. "These will be reviewed by department leadership for alignment with Trump administration priorities."

New Jersey Attorney General Platkin joined a multi-state lawsuit against a Trump administration order that aims to curtail federal spending.

Following widespread confusion, lawsuits and backlash, the Trump administration rescinded an order that attempted to pause federal funding for grants and loan programs.

WASHINGTON (AP) — The White House is pausing federal grants and loans starting on Tuesday as President Donald Trump’s administration begins an across-the-board ideological review of its spending.

The Trump administration on Wednesday rescinded a sweeping directive to pause federal loans, grants and other financial assistance, a White House official said, just shortly before it was set to appear in court for a second straight day to defend the policy.