American President Barack Obama plans to cut 40,000 troops from the Army's ranks over the next two years.
At the same time, all branches of the military are preparing to lift the ban on transgender, cross-dressing soldiers serving in the military.
According to reports, the Pentagon plans to approve coverage for sex change surgery for the estimated 15,000 transsexuals who are currently serving in the military.
The Pentagon cited the high risk of suicides, sexual harassment and violations of civil rights as factors in the decision to lift the ban.
Transsexual military pilot Sergeant Shane Ortega, 28, complains bitterly that she is forced to wear women's uniform that don't fit because she takes Testosterone and other male androgens to increase her muscle mass and give her male characteristics.
The new policy will allow mentally ill soldiers like Ortega to wear the uniform of their choice and to use the bathroom of their chosen gender.
The new policy will also pay for sex change operations for Ortega and others like her who suffer from Gender Dysphoria.
"I'm pumped up," she told ABC News. "At the same time I know this is a small step forward and there's so much more to do."
Ortega said she looks forward to the new policy that will pay for her expensive hormone shots, while other veterans are forced to wait months or years for basic healthcare.
"It’s a human rights, health care issue," Ortega said.
The new military policy apparently does not include mental health therapy for these conflicted soldiers who can't accept who they are.
Mental health counseling is considered homophobic.
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