White House says some employees were fired by mistake

As the Office of the Secretary of Defense continues to examine its policy on transgender troops, the Department of the Army disclosed new guidance that notably directs the Army not to initiate any adverse personnel action solely because of a soldier's transgender status.

The policy -- revealed in a court filing in a case challenging the executive order -- also directs the Army leadership to allow any soldier to continue receiving medical care to transition or treat their gender dysphoria.

"At this time, do not initiate any medical board or adverse personnel action solely related to transgender status. Policy and implementation guidance related to current executive orders will be published when available," read the unclassified memo titled "Implementation of Executive Orders Related to Transgender Military Service."

The policy also instructed service members not to use any personnel or medical system to identify transgender soldiers.

"All service members will be treated with dignity and respect at all times," the memo said.

-ABC News' Peter Charalambous and Luis Martinez

Following a Boston judge's decision to deny the request for an injunction blocking the Trump administration's federal buyouts, the Office of Personnel Management announced the program could officially close after the legal win.

"OPM is pleased the court has rejected a desperate effort to strike down the Deferred Resignation Program. As of 7:00 PM tonight, the program is now closed," an agency spokesperson said in a statement to ABC News.

"There is no longer any doubt: the Deferred Resignation Program was both legal and a valuable option for federal employees. This program was carefully designed, thoroughly vetted, and provides generous benefits so federal workers can plan for their futures," the spokesperson added.

As of Wednesday, 73,000 federal workers had accepted the Trump administration's buyout offer.

-ABC News' Ben Siegel

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