Former White House chief of staff Mick Mulvaney said Tuesday that President Trump’s federal aid freeze could end up at the Supreme Court. “How does this end? This is already in the courts. You

That fight could become a constitutional clash over control of taxpayer money and expansion of executive power before the Supreme Court.

As Trump's funding freeze heads to court, he hopes judges grant him the power of impoundment. What is impoundment? And why does it matter?

President Donald Trump has ordered a freeze on all federal assistance loans and grants, and there has been considerable confusion over what exactly is being targeted by the wide-ranging move. A memorandum issued by the Office of Management and Budget ordered federal agencies "to identify and review all federal financial assistance programs and supporting activities consistent with the President's policies and requirements.

The Trump administration on Wednesday rescinded a sweeping directive to pause federal loans, grants and other financial assistance, a White House official said, just shortly before it was set to appear in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

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

A federal judge signaled he will issue a temporary restraining order barring the Trump administration from freezing federal loans and grants.

A federal judge said Wednesday he intends to halt the Trump administration from freezing federal grant funding, despite officials rescinding an initial Office of Management and Budget memo on that effort earlier in the day.

A White House memo set off a flurry of panic across nonprofit groups, who said they were unable to access federal government systems used to withdraw funds.