Military Readiness Enhancement Act of 2010 - Repeals current Department of Defense (DOD) policy concerning homosexuality in the Armed Forces.
Prohibits the Secretary of Defense (Secretary), and the Secretary of Homeland Security (DHS) with respect to the Coast Guard when it is not operating as a service in the Navy, from discriminating on the basis of sexual orientation against any member of the Armed Forces or any person seeking to become a member. Authorizes the re-accession into the Armed Forces of otherwise qualified individuals previously separated on the basis of sexual orientation.
Directs the Secretary to establish in DOD the Pentagon Working Group to report recommendations regarding the implementation of this Act. Requires such report to be submitted to the congressional defense committees.
Requires the Secretary to: (1) revise DOD regulations and issue new regulations as necessary to implement this Act; and (2) direct each military department Secretary to do the same.
Directs the Secretary to report on the compliance of institutions of higher education with federal law concerning the denial of access by such institutions to Reserve Officer Training Corps (ROTC) military recruiting on campus, as well as a description of actions taken to effect the denial of certain federal funding to institutions that continue to prevent ROTC access.