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Unlike his previous ban that prohibited new members from signing up if they were transgender, Trump's proposed ban reportedly would medically discharge all current trans service members.
Beshear signed the executive order after similar legislation repeatedly failed in the Republican-dominated state legislature earlier this year.
Civil rights groups lauded the court decision, saying it struck down a harmful policy.
The ruling paves the way for New York Attorney General Letitia James to take enforcement action against the county.
Transgender adults in Ohio will now also be required to undergo psychiatric care before receiving gender-affirming treatment.
