The White House announced late on March 23 that men and women "with a history or diagnosis of gender dysphoria-those who may require substantial medical treatment, including through medical drugs or surgery" could no longer serve in the military.
The policy announcement outraged advocates for transgender troops, and the advocates vowed to fight the limits in court.
Mr Trump's earlier ban was first announced on Twitter in July 2017, when he posted: "The United States government will not accept or allow transgender individuals to serve in any capacity in the U.S. military".
"(The Pentagon) will continue to assess and retain transgender service members", Pentagon spokesman Major David Eastburn said.
It is said that the it would be on the discretion of secretary of defence and secretary of homeland security to consider as to what exactly may constitute those circumstances.
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"We have 15,000 or more transgender troops and their families who are going to wake up tomorrow with their lives in chaos".
The new memorandum retracts Trump's previous ban, that wouldn't accept or allow transgender individuals to serve in the U.S. military. "It undermines the ability of trans service members to serve openly and military readiness as a whole".
The Pentagon reaffirmed that it would continue to comply with federal law. This time around, Trump claims his Defense Secretary, Jim Mattis, was more integral to the ban's creation and planned implementation.
"In short", Mattis concluded, "this policy issue has proven more complex than the prior administration or RAND assumed". "The court is not persuaded that defendants will be irreparably injured by allowing the accession of transgender individuals into the military beginning on January 1, 2018", she wrote.
"In 2016, after careful and deliberate study, the Pentagon determined that the prohibition on open service by transgender people lacked any foundation and lifted the ban". They have before. But should that fail (let's not forget, Neil Gorsuch is on the Supreme Court), Senator Kirsten Gillibrand introduced S.1820, a bill "to provide for the retention and service of transgender members of the Armed Forces", back in September of 2017. "This policy is not based on an evaluation of new evidence", Joshua Block, a senior staff attorney at the American Civil Liberties Union's LGBT and HIV Project, said in a statement.
A 2016 study commissioned by the US Defense Department found that allowing transgender people to openly serve in the military would have a "minimal impact" on readiness and health-care costs, largely because there are so few in the military's 1.3 million-member force.
Now, eight months later, what will happen to transgender people on active duty is still unclear.