Guidelines published on March 13th state that marines and sailors who do not identify with the gender assigned to them at birth may apply for an honourable discharge. Those who refuse will be removed from service later this month. Individuals who choose to leave voluntarily may receive severance pay under certain conditions.

According to a memo signed by Navy Secretary Terence Emmert, the Department of the Navy recognises only two sexes, male and female, and considers sex to be immutable. The policy is part of a broader effort to ban transgender individuals from all branches of the US military, following an executive order issued by President Trump. Defence Secretary Pete Hegseth justified the measure by arguing that the armed forces must function as "one unit" without subgroups.

Despite no evidence suggesting that transgender personnel are less capable than their cisgender counterparts, the Navy is enforcing the policy without actively identifying transgender service members. Instead, it expects individuals to come forward. The exact impact remains uncertain, but estimates range from 4,240 to 15,000 active transgender service members. Human rights organisations, including the Human Rights Campaign, have strongly condemned the measure as discriminatory and dangerous.