A second federal judge appears ready to issue an order blocking the Trump administration from freezing funding on grant and loan programs, despite a move by the Office of Management and Budget to rescind a controversial memo Wednesday just before the hearing.

U.S. District Judge John McConnell Jr. said the Trump administration appeared to still be pursuing the "pause" on federal grants even though the Office of Management and Budget rescinded a memo authorizing the freeze.

The Trump administration on Wednesday rescinded a sweeping directive to pause federal loans, grants and other financial assistance, a White House official said, just shortly before it was set to appear in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

In a sweeping order that surpasses the scope of dozens of executive orders Trump has signed, his top budget office directed agencies to pause federal grants on Tues

A U.S. judge on Wednesday said he was inclined to temporarily block the Trump administration from pausing federal loans, grants and other financial assistance, intervening at the behest of Democratic state attorneys general amid confusion over White House spending policy.