• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipMilitary

Trump Says Transgender People ‘Burden’ the Military With ‘Tremendous’ Costs. Here Are the Facts

By
Madeline Farber
Madeline Farber
Down Arrow Button Icon
By
Madeline Farber
Madeline Farber
Down Arrow Button Icon
July 26, 2017, 12:20 PM ET

President Donald Trump announced Wednesday that he plans to ban transgender people from serving “in any capacity” in the U.S. military, citing “tremendous medical costs” as a reason for his decision.

“After consultation with my Generals and military experts, please be advised that the United States Government will not accept or allow Transgender individuals to serve in any capacity in the U.S. Military,” Trump said in a series of morning Twitter posts. “Our military must be focused on decisive and overwhelming victory and cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail. Thank you.”

But a 2016 RAND study commissioned by the Pentagon itself contradicts the President’s rationale, finding that the medical costs for transgender military members would be an “exceedingly small portion of active-component health care expenditures.”

By analyzing private health insurance data on gender transition-related expenditures, (such as hormone therapy or surgical treatment, for instance), researchers found that Military Health System costs could increase by $2.4 million and $8.4 million per year if it were extended to cover the estimated 1,320 to 6,630 transgender people in the military. This amount pales in comparison to the Department of Defense’s $49.3 billion health care expenditures in 2014, for example, and would represent between 0.005% to 0.017% of the department’s overall health care costs, according to the study.

Overall, the study estimated that only 29–129 service members would seek gender transition–related care per year, and 30 to 140 personnel would seek hormone therapy. Another 25 to 130 personnel would seek surgical treatment.

After consultation with my Generals and military experts, please be advised that the United States Government will not accept or allow……

— Donald J. Trump (@realDonaldTrump) July 26, 2017

….Transgender individuals to serve in any capacity in the U.S. Military. Our military must be focused on decisive and overwhelming…..

— Donald J. Trump (@realDonaldTrump) July 26, 2017

….victory and cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail. Thank you

— Donald J. Trump (@realDonaldTrump) July 26, 2017

Trump’s sweeping decision comes after former defense secretary Ashton Carter ended the U.S. ban in 2016, thus allowing transgender troops to serve openly, receive medical care, and change their gender identity in the Pentagon’s personnel system. The President’s announcement also comes after a report last week that House Republicans are working to revive an amendment that would ban the Pentagon from funding sex reassignment surgeries and hormone therapies. The initial amendment failed earlier in July, meaning that for the first time, the military health care system could be called on to provide these services.

Trump also said that allowing transgender service members would cause “disruption.” He did not elaborate on this, but the RAND study concluded that “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.”

In 2016, 18 countries — 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 — allowed transgender military personnel to serve openly.

About the Author
By Madeline Farber
See full bioRight Arrow Button Icon

Latest in Leadership

Big TechApple
Apple rocked by executive departures, with chip chief at risk of leaving next
By Mark Gurman and BloombergDecember 6, 2025
1 hour ago
SuccessWealth
The $124 trillion Great Wealth Transfer is intensifying as inheritance jumps to a new record, with one 19-year-old reaping the rewards
By Jason MaDecember 6, 2025
2 hours ago
Bambas
LawSocial Media
22-year-old Australian TikToker raises $1.7 million for 88-year-old Michigan grocer after chance encounter weeks earlier
By Ed White and The Associated PressDecember 6, 2025
8 hours ago
AITech
Nvidia’s CEO says AI adoption will be gradual, but when it does hit, we may all end up making robot clothing
By Marco Quiroz-GutierrezDecember 6, 2025
10 hours ago
Timm Chiusano
Successcreator economy
After he ‘fired himself’ from a Fortune 100 job that paid up to $800k, the ‘Mister Rogers’ of Corporate America shows Gen Z how to handle toxic bosses
By Jessica CoacciDecember 6, 2025
11 hours ago
Mark Zuckerberg laughs during his 2017 Harvard commencement speech
SuccessMark Zuckerberg
Mark Zuckerberg says the ‘most important thing’ he built at Harvard was a prank website: ‘Without Facemash I wouldn’t have met Priscilla’
By Dave SmithDecember 6, 2025
12 hours ago

Most Popular

placeholder alt text
Economy
Two months into the new fiscal year and the U.S. government is already spending more than $10 billion a week servicing national debt
By Eleanor PringleDecember 4, 2025
2 days ago
placeholder alt text
Big Tech
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
1 day ago
placeholder alt text
Success
Nvidia CEO Jensen Huang admits he works 7 days a week, including holidays, in a constant 'state of anxiety' out of fear of going bankrupt
By Jessica CoacciDecember 4, 2025
2 days ago
placeholder alt text
Success
‘Godfather of AI’ says Bill Gates and Elon Musk are right about the future of work—but he predicts mass unemployment is on its way
By Preston ForeDecember 4, 2025
2 days ago
placeholder alt text
Success
Nearly 4 million new manufacturing jobs are coming to America as boomers retire—but it's the one trade job Gen Z doesn't want
By Emma BurleighDecember 4, 2025
2 days ago
placeholder alt text
Asia
Despite their ‘no limits’ friendship, Russia is paying a nearly 90% markup on sanctioned goods from China—compared with 9% from other countries
By Jason MaNovember 29, 2025
7 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.