The Pentagon's top leaders are going before Congress for the first time in months to face a long list of controversies.
Mark Esper, Secretary of Defense
Bias in hiring and promotion decisions has been well documented.
Last week, Trump said that he is ordering a major reduction in troop strength in Germany.
"The Navy, as an institution, has a moral obligation to know. And, it should act."
Weeks after dozens of trainees tested positive, officials refused to say whether the virus had spread.
The Pentagon is rolling out a three-pronged plan to root out racism in the ranks.
The suit had been filed against Defense Secretary Mark Esper, challenging the military's current transgender policy.
At a Pentagon briefing earlier, Esper said the Insurrection Act should only be used in dire emergencies.
Army Secretary Ryan McCarthy told AP that the reversal came after Esper attended a meeting at the White House.
Esper broke his lengthy silence regarding the surge of protests nationwide following the May 25 death of George Floyd.