Seventeen transgender Air Force members sued over lost retirement benefits after being denied discharge with full pay despite years of service.

Seventeen transgender Air Force members sued the U.S. government on November 12, 2025, alleging the military unlawfully revoked their early retirement benefits after denying them retirement following 15 to 18 years of service. The lawsuit challenges a policy change that separates transgender service members without retirement pay or health benefits, despite prior approval for retirement. Advocates say the affected individuals could lose up to $2 million in lifetime benefits. The policy is linked to broader efforts under the Trump administration to restrict transgender military service, which the Supreme Court has allowed to remain in effect during ongoing legal reviews. The Pentagon has not commented, and the Air Force has barred transgender personnel from appealing separation decisions before peer review boards, a move now being implemented across the military.