The president was back on his feet moments after taking a spill onstage.
The event was set to take place at Nellis Air Force Base in Nevada on Thursday, the first day of Pride month.
Medical oversight and care "put candidates at significant risk,” the Naval Education and Training Command report concluded.
"He’s really putting our national security at risk for his personal social agenda," Sen. Tammy Duckworth said of her colleague.
The suspension of air operations was effective immediately, with units grounded until they complete the training.
The recently departed under secretary pushed through some of the most significant diversity and equity efforts at the Defense Department.
There’s little hope this year for efforts by progressives and a handful of Republicans to rein in military spending, congressional sources and experts say.
Aviation enthusiasts captured the communications as Air Force pilots destroyed the much-ballyhooed balloon.
The Pentagon said the balloon was carrying sensors and surveillance equipment, but China has maintained that the balloon was used mainly for meteorological research.
Nine military officers who worked at Malmstrom Air Force Base in Montana have been diagnosed with blood cancer. One has died.