I don't know if transgender people aren't as capable as other soldiers but I won't comment on that because Trump probably doesn't care about that either. He said it himself. He wants to lower medical expenses for the military and please his generals and military experts whoever they are.
My other theory is that because the US has military bases in many countries around the world, some of which are transphobic like the Middle East, he didn't want those countries upset by enlisting transgender people there. Maybe that's not the case because I've never heard of that ever happening and the Orange President does only care about the bottom line.
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