The initial White House order on Monday to freeze federal grants sparked confusion throughout Washington and nationwide.

The Trump administration reversed its policy to freeze grants and loans while officials evaluated whether spending met the president's priorities.

The spending freeze on federal assistance could affect everything from aid to nonprofits, universities, small business loans and state and local government grants.

Here’s where things stand with funding for SBA loans, federal contracts, and other programs. This has already been a confusing week for any business that receives loans or funding from the federal government.

Federal agencies have been instructed to assess their financial aid programs to determine which ones might be impacted.

The Trump administration has paused federal grants and loans to review agency programs and determine the best uses of funding for programs consistent with the law and Trump's priorities, Reuters reported. Agencies are required to identify legally mandated actions or assistance programs before completing an analysis.

The Monday evening memo from Trump's White House Office of Management and Budget sparked uncertainty over a crucial financial lifeline for states, schools and organizations that rely on trillions of dollars from Washington.

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

Calling the move illegal, 23 states and non-profit groups filed lawsuits and a federal judge temporarily halted the freeze from taking