Labor & Employment Law Daily Wrap Up, LITIGATION NEWS, TRENDS—Lawsuit filed over rescission of transgender Air Force and Space Force members’ retirement benefits, (Nov 18, 2025)

By Brandi O. Brown, J.D.

The suit was brought on the eve of Veterans Day by 17 transgender members who each served more than 15 years.

Last week, a group of transgender servicemembers who each have over 15 years of service in the United States Air Force and Space Force filed suit against the Trump administration in the Court of Federal Claims based on the rescission of their earned retirement benefits, which had been granted to them by the Secretary of the Air Force. Plaintiffs are represented by the National Center for LGBTQ Rights, GLAD Law, and pro-bono counsel from Stapleton Segal Cochran LLC and The Law Office of Jeremy Spiegel.

In June 2025, GLAD Law reports, the Air Force issued retirement orders to the transgender Airmen plaintiffs involved in the lawsuit. They allege that in August, the Air Force reneged and informed them that they must, instead, be separated without retirement under Secretary Hegseth’s transgender military ban. The lawsuit also argues that the rescission of retirement orders in this case violates the Air Force’s own retirement policies and procedures, which only permit retirement rescissions under very limited circumstances, none of which are present here.

Millions in losses. The servicemembers impacted by this rescission will face a loss of up to $1—2 million owed for their service over the course of their lifetime, they contend, in addition to the loss of lifetime access to TRICARE health insurance, which would have provided access to civilian health care providers beyond VA facilities.

“Tomorrow is Veterans Day, yet the Trump administration continues to deepen its betrayal of veterans by ripping away the pensions and health care benefits of honorable Airmen who have deployed around the world,” said NCLR Legal Director Shannon Minter, one of the lead attorneys, who is also transgender. “There has never been an administration that has shown such open hostility to the brave men and women who have served our country.”

“This is a senseless and shocking affront to troops who have sacrificed so much for our country,” said GLAD Law Staff Attorney Michael Haley. “Each of these families faces a potential loss of up to $1—2 million over the course of their lifetimes. These brave transgender servicemembers deserve the retirement benefits they have earned and that the Air Force granted them. As a country, we must honor our word to them, not rip away their benefits.”

According to reporting in August, an Air Force spokesperson said that the service members were “prematurely notified” they would be able to retire.

The case is No. 1:25-cv-01921.

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