Pentagon agrees to settle with LGBTQ+ vets over 'don't ask, don't tell' discharges

The Pentagon has reached a legal settlement that will make it easier for an estimated 30,000 veterans who were separated from the military because they were LGBTQ+ to have their discharge papers updated to eliminate any reference to their sexual orientation, enabling them to receive veterans benefits.

LGBTQ+ veterans who were denied an honorable discharge when they were separated will also be eligible for an immediate review to upgrade their discharges.

The settlement, which must still be approved by a federal judge, applies to service members separated under the Pentagon's "don't ask, don't tell" policy that was in effect from 1994 to 2011 and earlier similar policies that prevented LGBTQ+ individuals from serving in the military.

Under don't ask, don't tell, LGBTQ+ service members could not be open about their sexual orientation, but could be separated administratively from the military if their sexual orientation became known. The policy drew its name from the idea that the military services would not "ask" service members about their sexual orientation, and gay and lesbian service members couldn't "tell."

The deal stems from a federal civil rights lawsuit, Farrell vs. Department of Defense, filed in August 2023 by five veterans who said that the Pentagon did not grant them honorable discharges or remove language specifying their sexuality from their service records following the 2011 repeal of "don't ask, don't tell."

A spokesman for the legal team representing the five veterans confirmed the proposed settlement to ABC News. The Pentagon referred questions about the settlement to the Justice Department. CBS News was first to report the the proposed settlement.

"Coming from a family with a long history of military service, I was beyond proud to enlist in 1985 to contribute to my country," said Sherrill Farrell, a Navy veteran who was the lead plaintiff in the case.

"When I was discharged because of my sexual orientation, I felt that my country was telling me that my service was not valuable -- that I was "less than" because of who I loved," she said. "Today, I am once again proud to have served my country by standing up for veterans like myself, and ensuring our honor is recognized."

Prior to the lawsuit, the Defense Department had streamlined procedures for those eligible to seek a review of their cases within a 10-month process. But the plaintiffs in the case said that process was "constitutionally inadequate" because it placed the burden on individuals to obtain their old personnel records, something that could take months or years, in effect delaying access to benefits.

"For the more than 30,000 veterans in the class action, this settlement represents a meaningful step toward restoring their honor and providing long-overdue recognition for their service to the nation," Zak Sawyer, a spokesman for legal team representing the veterans told ABC News. According to the Pentagon, 13,000 service members were separated under the don't ask, don't tell policy that replaced similar earlier policies for which it is difficult to get precise statistics, but the legal team believes it to be at least 30,000 from 1980 to 2011.

"Currently, for those discharged with characterizations other than Honorable, it can be arduous, if not impossible, to access critical benefits, including health care through the Department of Veterans Affairs, funding for higher education, home loan financing, job benefits, and more," Sawyer added.

"In applying for these benefits or subsequent jobs, veterans must also prove their military service, which effectively amounts to "outing" their sexual orientation," he said. "This proposed settlement will alleviate the immense challenges faced by LGBTQ+ veterans in seeking corrections to their discharge records and would ameliorate the current process, which is convoluted, burdensome, and often fraught with re-traumatization and stigma."

Most of the 13,000 service members the Pentagon says were separated from the military under don't ask, don't tell received honorable discharges, but about 2,000 received dishonorable discharges.

When the policy was repealed in 2011, many of those who had been dishonorably discharged were able to appeal their cases and received upgrades to honorable discharges, but the Pentagon last year proactively undertook a program that reviewed 851 cases of those that had not asked for appeals, possibly because they did not know they could.

When that review ended in October, the Pentagon said that 96.8% of the veterans had received some form of relief in their cases.

"It has been an honor to stand alongside and represent these brave veterans in their fight for justice," said Jocelyn Larkin, an attorney with Impact Fund that represented the plaintiffs.

"This proposed settlement is a historic step forward, providing LGBTQ+ veterans with a critical opportunity to request revisions to their discharge records," Larkin said.

"For too long, veterans who were unjustly discharged had to navigate a confusing and burdensome system to correct their records," she said. "This settlement brings a much-needed resolution by simplifying that process and restoring the dignity that these veterans rightfully deserve for their service."

If the settlement is approved by the judge overseeing the case, it is possible that as early as summer 2025 affected veterans would be able to request that their records be changed.

"As a Marine, I was proud to stand alongside my fellow service members, embracing the core values of honor, courage, and commitment," said Jules Sohn, a Marine veteran and one of the plaintiffs in the case.

"However, the pain and injustice of being discharged under discriminatory policies like 'don't ask, don't tell' have lingered for years," she added. "This settlement represents not just a recognition of those wrongs but a step toward ensuring that no service member ever faces such prejudice again."