White House says some employees were fired by mistake

The president of the American Federation of Government Employees -- one of the unions that sued to stop the Trump administration's government employee buyout plan -- is slamming the federal judge's decision as a "setback in the fight for dignity and fairness for public servants" while vowing to continue challenging the buyout.

AFGE President Everett Kelley added in the statement Wednesday that U.S. District Judge George A. O'Toole Jr.'s decision does not weigh in on the lawfulness of the program, instead denying the request based on a lack of standing.

"We continue to maintain it is illegal to force American citizens who have dedicated their careers to public service to make a decision, in a few short days, without adequate information, about whether to uproot their families and leave their careers for what amounts to an unfunded IOU from Elon Musk," Kelley said.

-ABC News' Peter Charalambous

White House press secretary Karoline Leavitt reacted on Wednesday to a federal judge's decision to let the federal buyouts continue, saying it's "the first of many legal wins for the president."

"The court dissolved the injunction due to a lack of standing. This goes to show that lawfare will not ultimately prevail over the will of 77 million Americans who supported President Trump and his priorities," Leavitt added.

U.S. District Judge George A. O'Toole Jr.'s decision effectively clears the way for President Donald Trump and Elon Musk to begin their efforts to reduce the federal workforce significantly.

Trump signed an executive order on Tuesday that appeared to lay the groundwork for the next steps, ordering agency heads to consult with DOGE to shrink the size of the federal workforce.

-ABC News' Hannah Demissie and Peter Charalambous

Over 73,000 federal workers have accepted the Trump administration's buyout offer, an administration official confirmed to ABC News.

The buyouts, which are being offered in the form of a deferred resignation offer, are part of DOGE head Elon Musk's efforts to cut the federal government workforce under President Donald Trump's direction.

The program offers to continue to pay federal employees through Sept. 30, 2025, if they resign.

The White House is reacting to the consumer price index rising 3% from last year as well as food prices increasing -- saying it is "unexpected" and "bad news."

White House press secretary Karoline Leavitt blamed the Biden administration for not being transparent on the economy and indicated the president has called for lower interest rates. On the other hand, the Federal Reserve has made clear that it is holding interest rates steady to try and tamp down inflation.

"This is an indictment of the Biden administration's mismanagement of the inflation crisis and their lack of transparency in addressing it," Leavitt said during the Wednesday press briefing.

Leavitt said President Donald Trump has made his potion on tackling inflation and interest rates "very clear."

"He wants interest rates to be lower. He wants inflation to be lower. And he believes that the whole government economic approach that this administration is taking will result in lower inflation," Leavitt said.

-ABC News' Kelsey Walsh