The US military's ban on openly gay service members was declared unconstitutional by federal judge.
Virginia Phillips said she would issue an order to stop the government enforcing the "don't ask, don't tell" policy nationwide.
The judge ruled that the ban violates the First and Fifth Amendment rights of gays and lesbians.
The "don't ask, don't tell" policy prohibits the military from asking about the sexual orientation of service members.
Under the 1993 policy, servicemen and women who acknowledge being gay or are discovered engaging in homosexual activity, even in the privacy of their own home, were dsicharged.
Ms Phillips said the policy did not help military readiness. She insisted it had a "direct and deleterious effect" on the armed services by slowing recruitment during wartime and losing personnel with critical skills and training.
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