A federal judge gave final approval Wednesday to a class-action settlement between the Defense Department and LGBTQ veterans who were discharged because of their sexual orientation under “don’t ask, don’t tell” and similar earlier policies.
The settlement could affect the more than 35,000 veterans discharged between 1980 and 2011, “because of real or perceived homosexuality, homosexual conduct, sexual perversion, or any other related reason,” according to court documents.
A group of veterans filed the lawsuit in the U.S. District Court for the Northern District of California in August 2023, alleging that the effects of “don’t ask, don’t tell” — which was signed into law by President Bill Clinton in 1993 and was in effect from 1994 to 2011 — violated their constitutional rights.

Service members who received a less than honorable discharge from the military are disqualified from accessing certain benefits, such as medical care through the Veterans Health Administration and a pension. Those who were honorably discharged but whose discharge form says they separated from the military due to homosexuality could be outed when they are required to present the form to receive benefits or during background checks.
The agreement, which was reached in January, will allow veterans who received a less than honorable discharge because of their sexual orientation to be eligible for an immediate review and an upgrade to an honorable discharge. Veterans who received an honorable discharge, but whose discharge form states that they separated from the armed services because of their sexual orientation, will be able to have that characterization removed from the form within months.
As part of the settlement, the Defense Department has to create a streamlined process for veterans to request a review of their discharge paperwork. The department now has until mid-August to post information on its website and mail letters to class members telling them how to apply for a new military discharge form. Once the new process is in place, class members will have three years to submit requests for new discharge forms.
In response to a request for comment on the settlement, a Pentagon press officer referred NBC News to the Department of Justice. The DOJ and the plaintiffs’ lawyers did not immediately return a request for comment.
This week’s class-action settlement comes as another federal judge weighs whether to block President Donald Trump’s administration from banning transgender people from military service. The ban stems from an executive order signed by the president on Jan. 27 that reinstates a policy from his first term and rescinds an order from former President Joe Biden that allowed trans people to enlist and serve openly.
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