BRIEF

The Implications of
Allowing Transgender Personnel
to Serve Openly in the U.S. Military

U

nder current U.S. Department of Defense (DoD) policy, both
the physical and psychological aspects of “transgender conditions”
disqualify individuals from joining the military and are grounds for
administrative discharge. However, in July 2015, Secretary of Defense
Ashton Carter announced the creation of a working group “to study
the policy and readiness implications of welcoming transgender
persons to serve openly.” He also directed that the Under Secretary of Defense
for Personnel and Readiness would make the final decision on all administrative
discharges for personnel diagnosed with gender dysphoria, a condition
characterized by discomfort or distress resulting from a discrepancy between a
person’s gender identity and sex assigned at birth.
As DoD reviews potential changes to its policy on transgender service
members, it will need to consider the unique health care needs of this population,
the potential costs associated with extending coverage for these needs, and the
readiness implications of allowing transgender service members to serve openly.
It could also benefit from lessons learned by foreign militaries that already permit
transgender personnel to serve openly. A RAND study explored these issues,
reviewed the experiences of foreign militaries with openly serving transgender
personnel, and assessed which DoD accession, retention, separation, and
deployment policies may require changes if transgender personnel are allowed to
serve openly in the U.S. military.

C O R P O R AT I O N

 Key Policy Questions
What are the unique health care needs of the transgender
population?

Transgender is an umbrella term referring to individuals who identify with a gender
different from the sex they were assigned at birth. It is important to note that
transgender status alone does not constitute a medical condition. Under current
guidelines in the Diagnostic and Statistical Manual of Mental Disorders, fifth edition
(DSM-5), those who experience significant distress related to their transgender
status may have a medical condition called gender dysphoria and may require some
combination of psychosocial, pharmacologic, or surgical care. Treatment may
begin after psychotherapy to confirm a diagnosis of gender dysphoria, and any
treatment decisions are made in collaboration with medical specialists.
A subset of transgender individuals may choose to transition and to live and
work as a gender different from that assigned at birth. For some, the transition
may be primarily social, with no accompanying medical treatment. For others,
medical treatments, such as hormone therapy and hair removal, are important
steps to align their physical body with their target gender. A subset of those
who medically transition may choose to undergo surgery to make their body as
congruent as possible with their gender identity. This process of surgical transition
is also often referred to as sex or gender reassignment or gender confirmation.
How many transgender personnel serve in the U.S. military?

It is important to note that there have been no rigorous epidemiological studies
of the size or health care needs of the U.S. transgender population, including
those who serve in the U.S. military. Most existing data are from surveys of
selected populations, making it difficult to extract accurate estimates. To help
overcome this limitation, the RAND study used data from previous research to
determine how many transgender personnel may be serving in the U.S. military.
Applying these prevalence estimates to fiscal year (FY) 2014 military personnel
numbers, the study estimated that there are between 1,320 and 6,630 transgender
personnel serving in the active component (accounting for 0.1–0.5 percent of
the active component), and between 830 and 4,160 in the Selected Reserve
(accounting for 0.1–0.5 percent of the Selected Reserve). Combining survey
evidence from multiple states and adjusting for the male/female distribution in
the military provided midrange estimates of 2,450 transgender personnel in the
active component and 1,510 in the Selected Reserve.
How many are likely to seek gender transition–related medical
treatment, and what are the costs of covering this treatment?

Again, not all transgender individuals choose to medically transition or opt for all
types of available treatments. A lack of empirical research also makes it challenging
to estimate the number of personnel who would seek gender transition–related
treatment. The RAND study applied two distinct methods that produced similar
(but not identical) results. First, analyzing private health insurance data on
actual utilization rates in the civilian population, the study estimated that only
29–129 service members in the active component would seek any type of gender

 transition–related care in a given year. Second, applying a prevalence-based
approach using estimates from self-reported data from the National Transgender
Discrimination Survey, the study estimated that between 30 and 140 personnel
would seek hormone therapy, and 25–130 personnel would seek surgical
treatment.
Using private health insurance data on transition-related treatment costs,
the study found that Military Health System costs would increase by between
$2.4 million and $8.4 million per year if it were to extend this care to transgender
personnel. This amount represents an exceedingly small proportion of activecomponent health care expenditures (0.038–0.134 percent of approximately
$6 billion in spending in FY 2014) and overall DoD health care expenditures
(0.005–0.017 percent of $49.3 billion in actual expenditures for the FY 2014
Unified Medical Program).
What are the potential readiness implications of allowing
transgender personnel to serve openly?

The effect on force readiness is an important consideration in any military
policy change. Many types of medical treatments can lead to lost labor and leave
personnel temporarily unable to deploy. Given the small estimated number of
transgender personnel and the even smaller number who would seek gender
transition–related treatment in a given year, the study found that the readiness
impact of transition-related treatment would lead to a loss of less than
0.0015 percent of total available labor-years in the active component. Even
using the highest estimates, less than 0.1 percent of the force would seek gender
transition–related treatment that would affect their ability to deploy. As a point
of comparison, in the Army alone, approximately 50,000 active-component
personnel were ineligible to deploy in 2015 for various legal, medical, or
administrative reasons—a number amounting to around 14 percent of the
active component.
A key concern in allowing transgender personnel to serve openly is how this
may affect unit cohesion. The underlying assumption is that if service members

 Total Transgender and Gender Nonconforming Personnel
in the Active Component Is Very Small at only 0.1–.0.5% of the Force

40–190 personnel
Transgender personnel who would seek to transition
per year, or live/work full-time as target gender

30–140 personnel

Accommodations
may be required

Transgender personnel who would seek
hormone therapy per year

25–130 personnel
Transgender personnel who would seek
surgical treatment per year

Deployment
restrictions
may apply

Number of transgender and gender nonconforming personnel totaled only 1,320 to 6,630 personnel, which represents 0.1–0.5% of the active
component, and the number who would seek gender transition–related treatments is even smaller. There were 1,326,273 personnel in the active
component in FY 2014. The numbers in the figure are based on the RAND study’s prevalence estimates. We define accommodations as adjustments
in military rules and policies to allow individuals to live and work as their target gender.

discover that a member of their unit is transgender, this could inhibit bonding
within the unit, which, in turn, would reduce operational readiness. Similar
concerns were raised in debates over whether to allow gay and lesbian personnel to
serve openly, as well as over whether to allow women to serve in ground combat
positions. However, evidence from foreign militaries and the U.S. military has
indicated no significant impact on unit cohesion or operational readiness as a
result of allowing transgender and gay and lesbian personnel to serve openly or
allowing women to serve in ground combat positions.
What can the U.S. military learn from other countries that
permit transgender personnel to serve openly?

At the time of this study, 18 countries allowed transgender military personnel to
serve openly: Australia, Austria, Belgium, Bolivia, Canada, the Czech Republic,
Denmark, Estonia, Finland, France, Germany, Israel, the Netherlands, New
Zealand, Norway, Spain, Sweden, and the United Kingdom. Case studies of four
of these countries—Australia, Canada, Israel, and the United Kingdom—revealed
four common themes:
• Service members are usually considered to have transitioned when they
publicly disclose an intention to live as their target gender and have received
a diagnosis of gender incongruence. At this point, personnel may be assigned
to the housing, uniforms, identification cards, showers, and restrooms of the
target gender.

 • Physical fitness standards typically do not fully shift until medical transition
is complete. In many cases, personnel are exempt from physical fitness tests
during transition. Because the gender transition process is unique for each
individual—and not all transgender personnel will seek gender transition–
related treatment—issues related to physical standards and medical readiness
are typically addressed on a case-by-case basis. This flexibility has been
important in addressing the needs of transgender personnel.
• Personnel are allowed to use sick leave for some, if not all, gender transition–
related medical or surgical treatments.
• None of the foreign militaries examined reported a negative impact on the
operational effectiveness, operational readiness, or cohesion of the force.

I N S I G H T S F R O M F O R E I G N M I L I TA R I E S
The experiences of foreign militaries offer

PROVIDE education and training on transgender

potential insights for U.S. policymakers if a

personnel policy to the entire force, and integrate

decision is made to allow transgender personnel

this training with other diversity-related training

to serve openly in the U.S. military:

and education.

ENSURE strong leadership support and identify

policy that addresses harassment aimed at

and communicate the benefits of an inclusive

transgender personnel alongside other forms of

and diverse workforce to successfully implement

harassment.

DEVELOP AND ENFORCE a clear anti-harassment

a policy change and integrate openly serving
transgender personnel into the force.

MAKE AVAILABLE subject-matter experts and
gender advisers serving within military units to

DEVELOP an explicit written policy on all aspects of

commanders seeking guidance or advice on gender

the gender transition process.

identity issues.

Which policies would need to be changed to allow transgender
personnel to serve openly?

If transgender personnel are allowed to serve openly in the U.S. military, it will
be important to assess whether any changes would need to be made to policies.
The RAND study reviewed 36 accession, retention, separation, and deployment
regulations across the services and the Office of the Secretary of Defense that may
require changes if DoD allows transgender personnel to serve openly. The study
found that language pertaining to transgender individuals in accession instructions
does not match that used in the DSM-5. This results in restrictions in DoD policy
that do not match current medical understanding of gender identity.

 R E C O M M E N D AT I O N S
The following recommendations should inform a review of the policies that may
be affected by a decision to allow transgender personnel to serve openly:
Accession policies.  DoD should review and revise the language in accession
instructions to match the DSM-5 for conditions related to mental fitness.
Physical fitness standards should specify physical requirements (rather than
physical conditions) and should clarify when the service member’s target gender
requirements will begin to apply.
Retention policies.  DoD should clarify retention standards during and
after medical transition. For example, policies should detail whether and when
personnel may need to be held temporarily exempt from physical fitness testing
and requirements during gender transition.
Separation policies.  DoD may want to revise the current separation process
based on lessons learned from the repeal of Don’t Ask, Don’t Tell. When discharge
decisions occur outside the standard medical and physical review process, this
limits documentation and opportunities for review. DoD should also develop
and disseminate clear criteria for assessing whether and how transgender-related
conditions may interfere with duty performance.
Deployment policies.  DoD should review and possibly adjust its deployment
restrictions in line with medical and technological advances, including minimally
invasive treatments and telemedicine. Such reforms could minimize the readiness
impact of medical procedures that are common among transgender personnel.

This brief describes work done in the RAND National Defense Research Institute and documented in
Assessing the Implications of Allowing Transgender Personnel to Serve Openly, by Agnes Gereben Schaefer,
Radha Iyengar, Srikanth Kadiyala, Jennifer Kavanagh, Charles C. Engel, Kayla M. Williams, and Amii M.
Kress, RR-1530-OSD, 2016 (available at www.rand.org/t/RR1530). To view this brief online, visit www.rand.
org/t/RB9909. The RAND Corporation is a research organization that develops solutions to public policy
challenges to help make communities throughout the world safer and more secure, healthier and more
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© RAND 2016.
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Images: cover, U.S. Air Force photo by Tech. Sgt. Cheryl Foster; page 2, left, U.S. Air Force photo by Senior
Airman Chase Cannon; page 2, right, U.S. Department of Defense; page 3, U.S. Department of Defense

RB-9909-OSD (2016)