A divided federal appeals court ruled that the Pentagon's transgender military policy unlawfully targets service members based on gender identity, partially upholding a lower court's decision.
The Trump administration is expected to challenge the decision, with Defense Secretary Pete Hegseth signalling an appeal to the US Supreme Court.
A US federal appeals court panel on Monday ruled that a Pentagon policy barring transgender people from military service is unlawful, handing another setback to President Donald Trump's policy agenda while allowing the ban to remain in effect during ongoing litigation.
In a 2-1 decision, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that the Trump administration's policy was intended to exclude people from military service based on their gender identity.
The ruling partially upholds a March 2025 decision by U.S. District Judge Ana Reyes in Washington, D.C., who found that Trump's executive order excluding transgender troops from military service likely violated constitutional rights.
The appeals court said the injunction should protect the transgender service members who brought the lawsuit and are currently serving in the military. However, it declined to extend those protections to plaintiffs seeking to enlist. The judges also put their ruling on hold to allow the administration to seek further review.
The ban itself remains in effect. The U.S. Supreme Court allowed the Pentagon to begin enforcing it last year while legal challenges continue.
The administration appealed after Reyes issued a preliminary injunction sought by attorneys representing active-duty transgender service members and individuals attempting to join the military.
A separate challenge to the policy was filed in Washington state and resulted in a ruling in favour of the plaintiffs, although that decision has also been blocked by the Supreme Court.
In January 2025, Trump signed an executive order stating that 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.
Following the order, Defense Secretary Pete Hegseth issued a policy that presumptively disqualifies people with gender dysphoria from military service. Gender dysphoria refers to the distress experienced when a person's assigned gender and gender identity do not match and 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 opinion. Wilkins was appointed by former President Barack Obama.
Judge Judith Rogers, appointed by former President Bill Clinton, joined the majority opinion but also partially dissented, writing that the injunction should have allowed transgender recruits named in the lawsuit to enlist.
In a dissenting opinion, Judge Justin Walker, who was appointed by Trump, argued that courts should not intervene in military decisions.
“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,” Walker wrote.
Jennifer Levi, senior director of transgender and queer rights at GLAD Law, welcomed 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. Hegseth indicated that the administration would appeal, writing in a social media post: “See you at SCOTUS.”
(with inputs from AP)
