The Pentagon said it has reached an agreement with Scouting America that will preserve the military’s long-running ties to the youth organization, even as Defense Secretary Pete Hegseth has pushed back against what he called “woke” policies in recent years. Hegseth said the terms keep the partnership in place but shift Scouting America’s focus, describing a negotiation aimed at backing away from diversity initiatives and other policies he criticized.

In the agreement, Hegseth put heavy emphasis on transgender participation, saying Scouting America will require members to use their “biological sex at birth and not gender identity.” He also said the organization’s applications will list only male and female options, with the option selected matching what he said is shown on a birth certificate. Hegseth did not describe in his comments how any requirement would be enforced, but he suggested additional clarifications about separation by gender for certain intimate spaces.

Scouting America, formerly known as the Boy Scouts of America, disputed the idea that the deal changes transgender youth participation. Roger Krone, the organization’s president and CEO, told The Associated Press that “We have transgender people in our program and we’ll have transgender people in our program going forward.” Krone said Scouting America’s application already has two boxes—one for boy and one for girl—and that the organization was already asking about sex assigned at birth. He also said “structures” in the organization accommodate transgender youth, describing some family troops that include both genders, and he said discussions with the Pentagon did not alter how programs are run.

Hegseth also said the Pentagon would “vigorously review” the changes and would cease support if Scouting America fails to comply. He said in a video posted on X that “Ideally, I believe the Boy Scouts should go back to being the Boy Scouts as originally founded, a group that develops boys into men,” while adding that the Pentagon hopes its concerns will be addressed but that it “could” stop support.

Beyond transgender-related language, the negotiated changes include adjustments to merit badges and support for military families. Several of the changes mirror ideas Scouting America provided to the Pentagon in January, including discontinuing its Citizenship in Society merit badge and introducing a Military Service merit badge. The agreement also includes waiving registration fees for children of military personnel, according to the AP report. Scouting America said those policy steps deepen the organization’s partnership with the military, which has included Scouts meeting on or near military installations in the U.S. and abroad.

Scouting America said the changes also reflect a need to comply with an executive order from President Donald Trump that targets DEI programs. In a statement, the Irving, Texas-based organization said it “maintained its new name” and “preserved our service to the more than 200,000 girls who participate in our programs.” The organization has changed membership policies over time, saying it began allowing gay youths in 2013, ended a blanket ban on gay adult leaders in 2015, and announced in 2017 it would accept transgender students. It began allowing girls as Cub Scouts in 2018 and into its flagship Boy Scout program, renamed Scouts BSA, in 2019.

The Pentagon’s deal came after it had already said earlier this month that it was reviewing its relationship with Scouting America and had characterized the organization’s DEI efforts as “unacceptable.” In a Feb. 6 statement, the Pentagon said Scouting America’s leadership decisions “run counter to the values of this administration,” citing an embrace of DEI and what it described as “gender-fluid ideological stances.” The report also noted that Hegseth’s broader anti-DEI efforts have included actions targeting military partnerships with some universities and changes to how he said media coverage should avoid what he called “woke distractions.”

The U.S. military and Boy Scouts have maintained ties for decades, with military logistical support for the National Boy Scout Jamboree dating to its inception in 1937. The report also said Scouting America raised concerns after a report from NPR that the Pentagon planned to cut support for Scouting programs on military bases and the National Jamboree, and to eliminate pay-grade increases for Eagle Scouts who enlist. Scouting America said it told Hegseth last month it had developed a plan following his suggestions, including changes related to merit badges, a ceremony rededicating the organization to leadership, duty to God, duty to country and service, and dissolving a DEI board committee.

The agreement lands as the Trump administration weighs possible military action in the Middle East and as tensions have escalated with Iran, according to the AP report. Scouting America, founded in 1910, has also faced other cultural changes and controversies, including the end of bans on gay scouts in 2013 and its later changes that it said opened the way for transgender children to join programs. The organization also underwent a bankruptcy process in the 2020s after sexual abuse claims, and a judge upheld the $2.4 billion bankruptcy plan in 2023, allowing the organization to continue operating while compensating more than 80,000 men who filed claims.