the military is not governed by FARs...

Here's a copy from a FAA letter of interpretation:

December 9, 1992
Dr. Dietrich Bahls

Dear Dr. Bahls:

....

You are correct that in the U.S. there is only "one" airspace in which
both civil and military aircraft operate. While in U.S. airspace Part
91 of the Federal Aviation Regulations (FAR) governs the operation of
aircraft, both civilian and military. Outside of U.S. airspace,
however, the rules of the appropriate jurisdiction govern both U.S.
civilian and military aircraft operations.

....