Transexual? impossible. How would the person get in the military.
Since instituting DADT, recruiters are barred from asking or investigating a prospective recruits sexual orientation. It used to be that while at the MEPS station, you would actually have to swear under penalty of perjury that you weren't a homosexual, not anymore.
His security clearance however is much more disturbing. Up until recently, if a security clearance investigation had revealed homosexuality or homosexual conduct in a subject, that information would not only be used to reject the clearance, but it would probably be used to separate the service member from service. That has changed. Now, the DOD is not allowed to use that information - if uncovered - in separation proceedings against the service member. It's one of the directives that was quietly changed after Obama took office.
I think - although I could be wrong because I have been retired for 12 months - that the homosexual conduct can still be used to reject the security clearance. Again, I'm not positive.
Nah, just horribly confused.