Pentagon illegally banned transgender troops from U.S. military service, appeals court panel rules

The Pentagon is seen, Tuesday, May 19, 2026, in Washington. (AP Photo/Alex Brandon)

WASHINGTON — A Pentagon policy illegally banned transgender troops from military service, a divided panel of federal appeal court judges ruled on Monday in another legal setback for President Donald Trump’s sweeping agenda.

The majority opinion -- by a three-judge panel from the U.S. Court of Appeals for the District of Columbia circuit -- held that the Trump administration’s policy was designed to exclude people from the military based on their gender identity.

The ban remains in effect. The U.S. Supreme Court allowed the Pentagon to start enforcing it last year, as litigation continues to plays out.

The panel’s new ruling would keep the military from kicking out current service members named in the lawsuit, but wouldn’t allow new transgender recruits to join. The judges put their decision on hold, though, to let the administration seek further review.

The appeals court panel’s 2-1 decision partially upholds a March 2025 ruling by U.S. District Judge Ana Reyes in Washington, D.C. Reyes concluded that Trump’s executive order to exclude transgender troops from military service likely violates their constitutional rights.

The administration appealed after Reyes issued a preliminary injunction requested by attorneys for several transgender people who are active-duty service members and others seeking to join the military. The appeals court’s majority decided that the injunction should be narrowed to the plaintiffs currently serving in the military but not those trying to enlist.

Another lawsuit challenging the ban was filed in Washington state and led to a ruling in favor of the plaintiffs challenging the policy in that case, though it’s been blocked by the Supreme Court.

In January 2025, Trump signed an executive order that claims the sexual identity of transgender service members “conflicts with a soldier’s commitment to an honorable, truthful, and disciplined lifestyle, even in one’s personal life” and is harmful to military readiness.

In response to the order, Defense Secretary Pete Hegseth issued a policy that presumptively disqualifies people with gender dysphoria from military service. Gender dysphoria is the distress that a person feels because their assigned gender and gender identity don’t match. The medical condition has been linked to depression and suicidal thoughts.

The policy “appears to be driven by the bare desire to harm a politically unpopular group: persons who identify as transgender,” Judge Robert Wilkins wrote for the majority. Wilkins was nominated to the court by Democratic President Barack Obama.

Jennifer Levi, senior director of transgender and queer rights at GLAD Law, applauded the ruling.

“Today’s decision is a powerful vindication of the plaintiffs’ extraordinary courage and unwavering commitment to their country,” Levi said.

The Pentagon did not immediately respond to a request for comment.

In a dissenting opinion, Judge Justin Walker said judges lack the power to second-guess the decision to exclude transgender troops.

“We have neither the expertise nor the authority to decide whether the military can exclude the plaintiffs from its ranks. The Constitution assigns that authority to Congress and the Commander in Chief,” wrote Walker, who was nominated by Trump, a Republican.

Judge Judith Rogers, who was nominated by Democratic President Bill Clinton, joined Wilkins’ majority opinion but also partially dissented. Rogers wrote that she would also have allowed new transgender recruits named in the lawsuit to join.

Michael Kunzelman and Lindsay Whitehurst, The Associated Press