I remember there was a transgendered soldier on one of the bases I've been stationed on. No one gave much of a shit about his/her gender, sat in the smoking area with the rest of us. What everyone did wonder about is if army money paid for the sex change while some of us couldn't get basic rehab. Not wondering in any malicious way against that individual, just where funding priorities lie.
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The military, and the V.A. does not pay for surgeries related to sex change. The V.A. does provide medical care for transgender veterans, but not sex change specific surgery.
Interesting, didn't know that.