Financial advisors serving LGBTQ veterans who were kicked out of the military due to their sexual orientation could help them get a new discharge status — and reinstated benefits — under a pending court settlement.
Less-than-honorable discharges under the previous "Don't Ask, Don't Tell" policy and others that restricted LGBTQ Americans from serving in the military have financial consequences. Such discharges disqualify veterans from benefits open to others who have served, and they create a stigma that follows ex-servicemembers on their military records, known as Form DD-214.
Now, that could change.
"While we know that the legacy of 'Don't Ask, Don't Tell' means that LGBTQ+ veterans may not have access
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In other words, the number of servicemembers pushed out of the military with discharges below the "honorable" status simply based on their sexual orientation is likely far greater than the Department of Defense's estimate of more than 30,000 LGBTQ veterans, cited by the plaintiffs in their August 2023 class-action lawsuit in San Francisco federal court. The settlement with the Pentagon came just before the administration led by President Joe Biden, a Democrat, will yield to that of
The lingering legacy of "Don't Ask, Don't Tell"
The Pentagon's existing process for reviews of below-honorable discharges that are "disqualifying them from valuable veterans' benefits" is so "burdensome, lengthy and opaque that it effectively denies meaningful relief to affected veterans," according to the plaintiffs' memo attached to the Jan. 6 settlement filing. Two days later, U.S. Magistrate Judge Joseph Spero gave preliminary approval to the agreement, which called for attorney-fee payments of $350,000 as the only direct financial payment stemming from the settlement.
"The lasting impact of the discharges under DADT and its predecessor policies memorialized in veterans' discharge papers touches virtually every aspect of veterans' lives," the memo stated. "For example, veterans are frequently required to show their DD-214s to prospective employers to establish their military service, which forces them to disclose their sexual orientation to their employer, lose out on hiring preferences given to other veterans or abandon the employment opportunity. State and federal governments have also created a vast network of benefits for veterans in recognition of their service, including healthcare, educational, and financial benefits — all of which require a DD-214 to prove military service. DD-214s indicating that a veteran was discharged pursuant to DADT or its predecessor policies also stigmatize veterans, isolate them from the veteran community and deprive them of society's respect for and recognition of their service."
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Representatives for the Department of Defense referred an inquiry about the settlement to the Department of Justice, which declined to comment on the agreement. The settlement filing included remarks by Defense Secretary Lloyd Austin on the 12th anniversary of the repeal of "Don't Ask, Don't Tell" in 2023.
"As the secretary of defense recently stated, for decades, Department of Defense policies required gay and lesbian service members to hide their sexual orientation or prevented them from serving altogether. Even still, those service members, including the settlement class members, 'selflessly put themselves in harm's way for the good of our country and the American people,'" the document stated. "In recognition of the settlement class members' service and sacrifice, the defendants acknowledge that certain service members, including settlement class members, may have an error or injustice in their record that warrants corrections to service characterization, changes to the narrative describing the basis for discharge, changes to separation and reentry codes or other appropriate relief."
Lead plaintiffs Sherrill Farrell, James Gonzales, Hayden Powell, Julian "Jules" Sohn and Lilly Steffanides filed the case with representation by attorneys from the Impact Fund, Legal Aid at Work, King & Spalding and Haynes & Boone,
"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," Farrell, a Navy veteran, told the news outlet. "Today, I am once again proud to have served my country by standing up for veterans like myself, and ensuring our honor is recognized."
Personal stories and finance
The settlement filing includes her personal story as well as those of the other plaintiffs, who described their experiences trying to serve their country from the mid-1980s up to just before the repeal of "Don't Ask, Don't Tell."
Steffanides (who uses they/them pronouns) entered the Navy in 1988 from a family with "a century-long tradition of military service" and eagerly anticipated becoming a so-called plank owner, a crew member in the commissioning of a ship, on the USS Abraham Lincoln, they said in a declaration of support for the settlement. However, during a Navy investigation that led to a 12-hour interrogation, Steffanides acknowledged being gay. Then they spent three days in a brig with little to eat or drink, followed by six months of work while superiors said the Navy was searching for a replacement. Upon their December 1989 discharge, the Navy told Steffanides that they would not be a plank owner and their name would be scratched off the ship's hull.
"Once I arrived at my parents' house in San Francisco after being discharged, I realized that my parents were ashamed of me," Steffanides said. "My discharge created a break in our relationship. My parents did not want me at home, so I left. I became homeless. At one point, I walked into a veteran's service organization but they could not even help me obtain temporary housing because of my discharge status and DD-214. I also couldn't qualify for any home loans from the Department of Veterans Affairs because of my discharge status. For about 24 years, I was homeless and lived on the streets."
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Under the settlement, the class members can seek new discharge paperwork through "a streamlined administrative change process" removing any indicators of their sexual orientation from Form DD-214 or "an expedited group discharge upgrade review process" that will each be available three years after approval of the settlement. The parties have scheduled a final hearing on the settlement's approval for March 12. After the final approval, advisors or others working with LGBTQ veterans can help them navigate the new processes available to class members under the settlement.
In his statement, Gonazales specifically pointed out the importance of raising awareness about the opportunity through the mandatory procedures outlined in the settlement and other means. He had followed the example of his father, a Marine Corps veteran, by joining the Navy in 1985, only to be "sexually assaulted by other sailors on multiple occasions" after enlisting, he said. While at sea near Italy around November 1986, Navy attorneys questioned him about his sexuality for hours until he admitted that he is gay. Then he had to spend three days in a brig ahead of a court martial and an eventual discharge. Gonzales was diagnosed with HIV at 27, and he believes he contracted the virus during his naval service, he said. Due to an "other than honorable" discharge, he was not able to get VA health care until last year.
"It is so important that the settlement makes sure veterans know that this process will be available to them," Gonzales said in his statement. "I didn't know that I could be considered a veteran or get access to any VA benefits or health care until my lawyer helped me. I believe almost all veterans who were discharged for their sexuality think they cannot get anything from their time in service. I'm glad the settlement will encourage LGBTQ+ servicemen and women who don't think it is possible to get their upgrade and their benefits."
