Donald Trump's White House ordered a pause in all federal grants and loans starting on Tuesday, a sweeping decision that could disrupt education and health care programs, housing assistance, disaster relief and a host of other initiatives that depend on billions of federal dollars.

Sources said the Trump White House directed federal agencies to stop distributing loans and grants late Monday until a review is held to ensure the spending meets Trump's agenda.

A Department of Education spokesperson said Tuesday that student financial aid is still operating under normal conditions

State, local agencies and other groups that receive federal grants were trying to understand the depths of the order's impact when it was walked back.

The order that froze trillions of dollars of federal grants and loans was published without vetting by key officials in the White House.

President Donald Trump issued a memo ordering a freezing of federal funds. After lawsuits and a federal judge issuing an injunction, the memo was rescinded.

U.S. President Donald Trump on Wednesday said a temporary freeze on certain discretionary spending announced by his administration a day earlier was meant to give time to the government to identify instances of improper spending.