President Donald Trump's budget office on Wednesday rescinded an order freezing spending on federal grants, less than a day after Massachusetts and other states sued and a federal judge intervened.

A judge temporarily blocked the freeze, which the White House says doesn't affect individuals, but federal payment portals are glitching.

Federal aid is a major source of revenue for states. According to Pew Charitable Trusts, federal grants represented 36.4% of total revenue for state governments in fiscal year 2022.

Attorney General Andrea Campbell and prosecutors from other states planned to sue President Donald Trump after his administration issued a directive to pause the distribution of federal funding.

The funding freeze "violates the separation of powers," Massachusetts Attorney General Andrea Campbell said, as a colleague from California called it "arbitrary and capricious."

A judge in Washington, D.C., sided with plaintiffs who claimed the White House’s freezing of billions of dollars in congressionally-approved funding violated the law.