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Pete Hegseth gestures with both arms extended while speaking into a microphone.

Defense Secretary Pete Hegseth testifies Jan. 14, 2025, during his Senate confirmation hearing. (Eric Kayne/Stars and Stripes)

WASHINGTON — The Navy is offering voluntary honorable discharges to transgender sailors and Marines who self-identify by March 28 or risk being involuntarily separated, according to a memo released Thursday.

“The Department of the Navy recognizes two sexes: male and female. An individual’s sex is immutable, unchanging during a person’s life,” reads the memo signed by Terence Emmert, the acting Navy secretary.

Sailors and Marines who are no longer eligible for military service, as well as potential new recruits, might be considered for a retention or recruitment waiver on a case-by-case basis provided there is a “compelling government interest” in that individual’s ability to support “warfighting capabilities” directly. Only the Navy secretary has authority to grant a waiver, according to the memo.

Troops with a diagnosis or history of gender dysphoria were disqualified from military service, according to instructions issued Feb. 27 by Defense Secretary Pete Hegseth. Gender dysphoria is the distress that a person feels because their assigned gender and gender identity don’t match. The medical condition has been linked to depression and suicidal thoughts.

The new policy stems from an executive order signed Jan. 27 by President Donald Trump that claims the sexual identity of transgender service members “conflicts with a soldier’s commitment to an honorable, truthful, and disciplined lifestyle, even in one’s personal life.”

Roughly 2,000 transgender people serve in the military, representing less than 1% of active-duty service members. It is unknown how many sailors and Marines are transgender.

The Navy said it will take no action to identify transgender sailors and Marines or those diagnosed with dysphoria.

“The chief of naval operations and the commandant of the Marine Corps will maximize the use of all available command authorities to ensure impacted personnel are afforded dignity and respect,” reads the memo.

Those who choose to separate will receive voluntary separation pay, depending on years of service. The policies also apply to reservists. Those who request voluntary separation will be placed on administrative, non-deployable status.

Additional guidance is expected for those who do not request voluntary separation and have a diagnosis or symptoms of gender dysphoria.

The ban on transgender troops is being challenged in court. A federal judge said Wednesday that she hopes to rule next week on whether to block the Trump’s administration from banning transgender people from serving in the military.

The Associated Press contributed to this report.

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Caitlyn Burchett covers defense news at the Pentagon. Before joining Stars and Stripes, she was the military reporter for The Virginian-Pilot in Norfolk, Va. She is based in Washington, D.C.

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