The military is lifting its ban on transgender service members serving openly, Defense Secretary Ash Carter announced on Thursday.
Carter, who had commissioned a study last July to look into the possible effects of lifting the ban, referred to the change as a "matter of principle."
"Americans who want to serve and can meet our standards should be afforded the opportunity to compete to do so. After all, our all-volunteer force is built upon having the most qualified Americans. And the profession of arms is based on honor and trust," he said.
Many changes have taken place in the military in recent years with the expanded role of women in the armed forces as well as the inclusion of gays, lesbians, and bisexuals following the repeal of the Don't Ask Don't Tell policy in 2011.
"Effective immediately, transgender Americans may serve openly. They can no longer be discharged or otherwise separated from the military just for being transgender," Carter said.
The military system will also now provide medical care to transgender service members, including hormone therapy and gender reassignment surgery if deemed necessary by doctors. A study by the RAND Corporation estimates that the cost for the Pentagon to provide medical care will be between $2.9 and $4.2 million a year.
However, the decision to lift the ban has been met with resistance. Chairman of the Armed Services Committee Rep. Mac Thornberry questioned how lifting the ban would contribute to military readiness.
"In particular, there are readiness challenges that first must be addressed, such as the extent to which such individuals would be medically non-deployable," he said in a statement.
Former Republican presidential candidate Ben Carson referred to the decision as "social experimentation."
"You know, we have too many important things to do. When our men and women are out there fighting the enemy, the last thing that we need to be doing is saying, 'What would it be like if we introduced several transgender people into this platoon?'" he said, according to CNN.