The Pentagon will resume gender-affirming care for transgender service members, an embarrassing setback to Defense Secretary Pete Hegseth’s efforts to restrict their participation.

The memo says the Defense Department is returning to the Biden-era medical policy for transgender service members due to a court order that struck down Hegseth’s restrictions as unconstitutional. The administration is appealing the move, but a federal appeals court in California denied the department’s effort to halt the policy while its challenge is pending.

As a result, the administration is barred from removing transgender service members or restricting their medical care, a priority of President Donald Trump and Hegseth. The administration insisted its restrictions were geared toward people experiencing medical challenges related to “gender dysphoria,” but two federal judges said in March that the policy was a thinly veiled ban on transgender people that violated the Constitution.