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 move comes after the order sparked widespread criticism and confusion. A federal district judge had temporarily paused the freeze.

The Trump administration on Wednesday rescinded a sweeping directive to pause federal loans, grants and other financial assistance, a White House official said, just shortly before it was set to appear in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