This IS a defeat for us. (Warning: the federal courts are turning increasingly hostile to us as Trump gives more and more lifetime judicial appointments to right-wing, anti-LGBT ideologues!)
However, this ONE ruling does NOT change the status of trans folks in the military - FOR NOW.
The federal judiciary is divided into a number of regional "circuits." District courts in FOUR circuits have issued injunctions preventing the Trump administration from implementing its ban on trans folks serving in the military. Each of these courts specified that its injunction should have NATIONWIDE effect. This makes sense, because the presence and activity of the armed forces are not limited to a single region of the country, and it is important that the military has UNIFORM standards and policies wherever it is located - not policies that vary depending on the specific location of your service.
This particular case is focused on the injunction that was issued by the District Court in Washington DC. The Court of Appeals for that circuit has now "vacated" the injunction of the District Court - meaning the injunction is dissolved. You can read the Court's ruling HERE (five pages):
https://www.documentcloud.org/documents/5674598-Transban.htmlHowever, the Court of Appeals in the DC Circuit DOESN'T HAVE POWER over the federal courts in OTHER circuits, so it can't dissolve those injunctions. So the other three injunctions REMAIN in NATIONWIDE effect, blocking the Trump administration from implementing its trans ban - FOR NOW.
This isn't necessarily the end in the DC Circuit, either. Although the Court of Appeals vacated the injunction there, it doesn't end the litigation. The District Court judge who issued the injunction is free to go forward with a full trial on the merits of the case.
It's well worth reading the decision of the Court of Appeals linked above if you want to understand the danger it poses. Simply put, it's a warning that lots of federal judges have NO EFFING IDEA what trans folks are like - and they aren't interested in learning.
Also, here's the basic plan Trump wants to implement in the military: You would ONLY be allowed to serve in the military - (1) as long as you don't suffer from gender dysphoria, AND (2) you agree to serve "in your biological sex," i.e., that you don't attempt to transition.
Anybody who reads the forums in Susan's Place has got to be aware that trans folks are NOT all alike. There is no such thing as a "one-size-fits-all," "cookie-cutter" trans person.
Some folks suffer dysphoria. Some folks don't. Some folks transition. Some folks don't. (That's up to YOU!)
But dysphoria and transition are LINKED for a lot of trans folks. Dysphoria is often the reason why trans people seek to transition. Because transition often relieves or resolves feelings of dysphoria.
Under the Trump plan, if you agree to forego transition and serve "in your biological sex," then you are likely to experience dysphoria. So you are subject to DISCHARGE - for your dysphoria.
On the other hand, if you attempt to address your dysphoria by transition (medical, surgical, social, etc.), that may relieve your dysphoria. But in that case, you are subject to DISCHARGE - because you violated your agreement to serve "in your biological sex."
Trump plan: either way, YOU LOSE!