Chloe Shapiro, a former member of the Texas Army National Guard, has faced significant financial and personal challenges after being discharged under the Pentagon’s policy barring transgender service members. After serving 12 years—including active duty as a combat engineer and holding leadership roles—Shapiro was honorably discharged in 2025 following an order that sought to remove transgender troops from military service. While the Defense Department promised severance payments totaling approximately $86,665 based on her years of service and rank, Shapiro and other former transgender service members have experienced extensive delays and difficulties in receiving these funds.
Shapiro’s situation highlights the broader issue affecting a number of transgender veterans. Since the reinstatement of the military ban under President Donald Trump’s administration, about 4,240 transgender service members were affected. Those who chose to leave voluntarily were promised severance packages intended to help them transition to civilian life, often amounting to six-figure sums for career soldiers. However, many veterans, including Shapiro, report inconsistent communication, administrative hurdles, and protracted delays in payment processing.
After leaving Texas and traveling to Seattle, Shapiro found herself homeless and struggling to meet basic needs while awaiting her severance. With only modest savings left, she relied on temporary shelter provided by members of the transgender community and public assistance programs such as Medicaid and food stamps. Despite repeated attempts—over 100 calls to military officials, contacting congressional representatives, and filing complaints—the full payment remained unreleased for months.
Similar accounts have emerged from other discharged transgender service members. An Indiana National Guardsman with young children accumulated significant debt after waiting for a $130,000 severance payment that was delayed beyond expected timelines. Others in the Air Force, including officers who flew search-and-rescue missions, were promised payouts exceeding $300,000 but faced delays that forced them to rely on community support and food banks. At least 17 Air Force members who were granted early retirement later had those agreements rescinded and payments withheld.
Representatives from the Pentagon have declined to comment on the payment delays, citing ongoing litigation challenging the policy that resulted in the discharge of transgender troops. Although a lower court temporarily blocked the ban, the Supreme Court allowed it to remain in effect during appeals. The Trump administration recently petitioned the Court to reverse that lower court injunction.
Shapiro’s case shows a fragmented and opaque system complicating ex-service members’ ability to access severance benefits. According to her communication with military pay offices, her severance remains subject to installment payments managed by state officials rather than the federal government, a process she says has no clear timeline. In early August, she received a partial payment of $10,000 but still awaits more than $66,000. Meanwhile, she has enrolled in college using her GI Bill benefits and is seeking stability while continuing to advocate for the funds owed to her.
Other transgender veterans have expressed frustration at the lack of guidance and coordination from military and administrative channels. Some describe being caught in bureaucratic limbo, with commanders and finance teams uncertain of procedures to resolve payments. The ongoing delays have heightened financial strain and uncertainty for many who had hoped severance pay would aid in restarting their lives after service.
The case of Shapiro and others reflects the challenges faced by transgender service members caught in shifting military policies and legal battles. As litigation continues, former troops are left navigating complex administrative processes while awaiting promised benefits to support their transition to civilian life.