<...>
Despite the prohibition, transgender people serve at double the rate of the general population, though they must keep their gender identity a secret or risk being discharged. A March report by the Palm Center found no reason to continue the ban, determining, Medical regulations requiring the discharge of transgender personnel are inconsistent with how the military regulates all other medical and psychological conditions, and transgender-related conditions appear to be the only gender-related conditions that require discharge irrespective of fitness for duty. The commission that produced the report was co-chaired by former Surgeon General Jocelyn Elders and retired Rear Admiral Alan M. Steinman.
Unlike Dont Ask, Dont Tell, there is no congressional statute dictating the ban on transgender servicemembers, meaning Hagel and the administration could change the policy without needing legislative approval. At least 12 other countries already allow trans people to serve, including: Australia, Belgium, Canada, the Czech Republic, Denmark, Israel, the Netherlands, New Zealand, Norway, Spain, Sweden, and the United Kingdom.
- more -
http://thinkprogress.org/lgbt/2014/05/11/3436566/hagel-transgender-ban/