The Trump administration is asking a federal appeals court to restrict free speech for military retirees, arguing they can forfeit pension benefits if they object to speech restrictions. Defense Secretary Pete Hegseth's legal team made the argument in court this week, sparking outrage among retired veterans who packed the courtroom.

The dispute centers on Senator Mark Kelly, an Arizona Democrat and retired Navy captain. After Kelly released a video with other lawmakers reminding service members they have a duty to disobey unlawful orders, Trump demanded he face execution as a traitor. Hegseth subsequently censured Kelly and sought to reduce his retirement rank and pay.

Kelly challenged the censure in court and won, but the administration appealed. During Thursday's arguments before the D.C. Circuit, judges appeared skeptical of the administration's position. Still, Hegseth has signaled he will take the case to the Supreme Court if necessary. A decision allowing pension-based speech restrictions would affect more than one million military retirees, creating a powerful tool for silencing former service members who criticize government policies.