The context behind this is head of OMB Russell Vought thinks impoundments - not paying out congressionally authorized funds - is constitutional. So this seems like a legitimate retreat on one of many impoundment issues. It required real pressure from Congress as they try to harden appropriations against an OMB willing to use almost every tactic to not disburse funds.
But impoundment issues persist in NASA and other science agencies in particular.
Still, it’s a hopeful sign that the constitutional system is not broken completely