California will help lead a coalition of states in suing to block a White House budget office order halting "all federal financial assistance."

WASHINGTON - The White House Office of Management and Budget has rescinded a Trump administration directive pausing federal loans, grants and other financial assistance, a White House official said on Wednesday.

But the legal battle over the plan that set off panic and confusion across the country is just beginning, and it could become a constitutional clash over control of taxpayer money and expansion of executive power before the Supreme Court.