Financial Costs and Loss of Critical Skills Due to DOD's Homosexual Conduct Policy Cannot be Completely Estimated, Government Accountability Office [GAO], February 23, 2005 [report indicating that the policy has hurt recruiting and retention as the war in Iraq has drained resources]. Excerpt:

The total costs of DOD's homosexual conduct policy cannot be estimated because DOD does not collect relevant cost data on inquiries and investigations, counseling and pastoral care, separation functions, and discharge reviews. However,DOD does collect data on recruitment and training costs for the force overall.Using these data, GAO estimated that, over the 10-year period, it could have cost DOD about $95 million in constant fiscal year 2004 dollars to recruit replacements for servicemembers separated under the policy. Also, the Navy, Air Force, and Army estimated that the cost to train replacements for separated servicemembers by occupation was approximately $48.8 million, $16.6 million, and $29.7 million, respectively.

Read the full text of the report here [PDF]. Reported in JURIST's Paper Chase here.