The new guidance will apply to veterans who were forced from service under the policy and given "other than honorable discharges" due to their sexual orientation, gender identity or HIV status.
South Carolina is one of about two dozen states that have few or no statewide LGBTQ protections. The federal Equality Act would change that, but some in the state say the bill goes too far.
Some religious groups fear the Equality Act could undermine the freedom to exercise traditional faith beliefs. Other denominations say anti-LGBTQ discrimination cannot be tolerated.