The Trump administration’s freeze on federal grants sparked chaos and confusion at state Medicaid agencies on Tuesday.

WASHINGTON—A sweeping White House order sought to pause billions of dollars in federal grants, loans and other financial assistance-programs, creating chaos and inviting lawsuits as states struggled to access funding portals dealing with Medicaid,

The pause has raised concerns among health officials and state leaders, as the vague wording leaves billions in Medicaid funding at risk, potentially disrupting coverage for millions of Americans.