An announcement is expected this week, and the services would have six months to assess the impact of the change and work out the details, the officials told AP today.
Military chiefs wanted time to methodically work through the legal, medical and administrative issues and develop training to ease any transition, and senior leaders believed six months would be sufficient.
During that time, transgender individuals would still not be able to join the military, but any decisions to force out those already serving would be referred to the Pentagon, the officials said. One senior official said the goal was to avoid forcing any transgender service members to leave during that time.
The officials said Defense Secretary Ash Carter has asked his personnel undersecretary to set up a working group of senior military and civilian leaders to take an objective look at the issue, identify any problems and develop uniform guidelines.
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One senior official said that while the goal is to lift the ban, Carter wants the working group to look at the practical effects, including the costs and what impact, if any, it would have on military readiness.
But studies and other surveys have estimated that as many as 15,000 transgender people serve in the active duty military and the reserves, often in secret but in many cases with the knowledge of their unit commander or peers.
US military leaders have pointed to the gradual and ultimately successful transition after the ban on gays serving openly in the military was lifted in 2011.