US appeals court rules Pentagon policy unlawfully banned transgender troops

A US federal appeals court panel has ruled that a Pentagon policy illegally barred transgender people from serving in the military, marking another legal setback for President Donald Trump's agenda.

A divided three-judge panel of the US Court of Appeals for the District of Columbia Circuit said the policy was designed to exclude individuals based on gender identity. However, the ban will remain in place for now as legal proceedings continue, after the US Supreme Court previously allowed its enforcement to begin.

The ruling limits its immediate impact to protecting transgender service members who are already in the military and part of the lawsuit. It does not allow new transgender recruits to join. The court also paused implementation of its decision to give the administration time to seek further review.

The decision partially upholds a 2025 ruling by US District Judge Ana Reyes, who found that Trump's executive order excluding transgender troops likely violated constitutional protections.

Following that ruling, the administration appealed after an injunction was issued in favour of active-duty transgender service members and individuals seeking to enlist. The appeals court narrowed that order, extending protection only to those already serving.

Another related case in Washington state had also ruled against the ban, but that decision was blocked by the Supreme Court.

The policy stems from a January 2025 executive order signed by Trump, which argued that transgender identity conflicts with military discipline and readiness. In response, Defense Secretary Pete Hegseth introduced a rule that generally disqualifies people diagnosed with gender dysphoria from serving. The condition refers to distress caused when a person's gender identity does not match their sex assigned at birth.

Writing for the majority, Judge Robert Wilkins said the policy appeared to be motivated by an attempt to target a politically unpopular group, namely transgender people.

The ruling was welcomed by LGBTQ rights advocates. Jennifer Levi of GLAD Law called it a strong validation of the plaintiffs' position and their service to the country.

The Pentagon has not yet commented on the ruling, though Hegseth indicated on social media that the administration plans to appeal further, referencing the US Supreme Court.

In a dissenting opinion, Judge Justin Walker said courts should not interfere in military decisions regarding troop eligibility, arguing that such authority lies with Congress and the president as commander in chief.

Judge Judith Rogers agreed with the majority that the policy was unlawful but said she would also have allowed transgender individuals seeking enlistment to proceed in the case.