White House says some employees were fired by mistake

As Elon Musk’s Department of Government Efficiency works to dismantle the Consumer Finance Protection Bureau (CFPB), the Trump administration on Wednesday was hit with a third lawsuit challenging the legality of the effort.

The filing -- from the City of Baltimore and a local nonprofit -- alleges the administration is attempting to leave the CFPB "defunded and dead in the water" and is acting without congressional approval.

The lawsuit specifically called out the Trump administration for attempting to utilize the CFPB’s statutory funding mechanism to effectively starve the agency.

With the CFPB drawing its funding directly from the Federal Reserve System, the Trump administration plans to stop drawing the funds necessary to support the CFPB’s work, according to the lawsuit.

The lawsuit asked the court to block acting CFPB director Russell Vought from taking any steps to defend the CFPB.

-ABC News' Soo Youn and Peter Charalambous

New York Attorney General Letitia James said she is ready to defend her state from the Department of Justice's lawsuit against New York over its alleged resistance to supporting the Trump administration’s crackdown on illegal immigration.

"Our state laws, including the Green Light law, protect the rights of all New Yorkers and keep our communities safe. I am prepared to defend our laws, just as I always have,” James said in a statement Wednesday.

The Green Light law allows New York residents to get a driver's license regardless of citizenship or legal status.

-ABC News' Aaron Katersky

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