Yeah, it's been a big deal in the US for the last year or so whether or not the Boy Scouts would allow openly gay kids to join them. They fought it for a while, then decided to allow them, hence this commemorative badge. And yes, 10 year old kids know if they are gay or straight, besides the fact that Boy Scouts can be between 10 and 17 years old.

Funny though that openly gay adults cannot join as leaders, as if they're all sexual deviants who can't control themselves around young boys or something.