Local
Trans group struggles with financial crisis
T.H.E. hit by IRS tax liens, possible suspension of city funds

Longtime activist Earline Budd is reportedly among THE staffers experiencing problems getting paid. (Blade file photo by Michael Key)
Transgender Health Empowerment, a non-profit group that has provided a wide range of services for D.C.’s transgender community for more than a decade, is struggling with a financial crisis that has prevented it from paying its employees on time and has triggered staff layoffs and resignations, according to multiple sources familiar with the organization.
Public records at the D.C. Recorder of Deeds office show that the IRS filed at least 10 liens against THE over the past three-and-a-half years. Most are due to THE’s failure to pay employee payroll taxes, the records show.
Sources familiar with the situation say the liens prompted the D.C. Department of Health to suspend some or all of its funding for THE for HIV/AIDS-related services. The funding suspension reportedly was triggered by a procurement rule that restricts city funding for vendors or contractors that are in violation of the law, including federal tax law, the sources said.
A former THE employee and current client said they each were told by THE staffers that a delay in city funding forced the group to cut back on its drop-in services at its headquarters at 1414 North Capitol Street, N.W., and to limit services to clients by appointment only.
“The whole month of March we didn’t get a paycheck,” said the former employee, who was laid off in April because of THE’s financial problems, the former employee told the Blade.
Among THE employees not getting paid or getting paid late are THE official and longtime transgender activist Earline Budd, THE Director of Programs Brian Watson, and transgender activist Jeri Hughes, sources familiar with the group said.
Top officials with THE and the Department of Health have not responded to repeated requests by the Blade for information about the cause of THE’s financial problems and the status of city funding for the group.
“At this particular time, there’s no comment,” Brian Devine, THE’s finance manager, told the Blade. Devine said THE Executive Director Anthony Hall also had no comment.
“We just had a board meeting and that was one of the issues we spoke of,” said Devine, adding that the board decided not to issue a statement about the situation at the present time.
DOH spokesperson Najma Roberts said she would make inquiries about the THE funding status when contacted by the Blade last week. As of press time this week she had not responded.
The Blade filed a Freedom of Information Act request with the DOH deputy general counsel, Phillip Husband, on April 3 seeking the information that the department has yet to release through Roberts, the press spokesperson. Husband said the department usually takes up to 15 business days to respond to a FOIA request.
“My biggest concern is THE’s clients,” said transgender activist Ruby Corado, director of Casa Ruby, an LGBT community center in Columbia Heights that caters to the Latino and transgender communities.
Corado said some of THE’s clients have been coming to Casa Ruby after being told that THE’s drop in center had curtailed its services.
Corado and other transgender activists called THE the D.C. area’s preeminent service provider and advocate for the transgender community.
They note that THE also operates the city’s only housing facility dedicated to homeless LGBT youth. The facility known as the Wanda Alston House has been nationally recognized as an innovative resource for LGBT youth that offers counseling, employment and vocational training, and other services.
Among THE programs funded by DOH is its highly acclaimed Comprehensive Risk Counseling Services or CRSC program, which offers risk reduction interventions for preventing HIV infection among transgender people, especially transgender women, whom experts say are at high risk for HIV. THE also offers HIV testing and counseling.
“THE is a transgender institution for D.C.,” Corado said. “There are a lot of people counting on its services, especially those living with HIV. It is an organization that cannot go away,” she said.
“So the question I have is what is the Department of Health doing about this,” Corado said. “Why aren’t they talking about what happens to those clients? Are those clients OK?”
Transgender activist Alexandra Beninda, who serves on the D.C. Human Rights Commission, was among those who praised THE for its work in the transgender community but said she was unaware that the group was having financial problems.
She said she hoped the community would rally in support of THE but expressed concern that news of the group’s problems had not gotten out to those who might be willing to help.
Mara Keisling, executive director of the D.C.-based National Center for Transgender Equality, said she, too, was unaware of the THE financial problems.
“They are the centerpiece for local transgender efforts,” Keisling said.
Records of the IRS liens against THE filed with the D.C. Recorder of Deeds show that between March 2010 and earlier this year the group owed the IRS a total of $260,075. The records don’t show how much of that amount was for unpaid taxes and how much, if any, was for interest and penalties.
The records show that THE has since made payments of $91,912 to pay off the back taxes and currently owes the IRS $168,163.
As a non-profit, tax-exempt organization, THE doesn’t pay taxes on its income from donors or from government grants and contracts. The records indicate that most of the money owed is for employee payroll taxes.
Due to THE’s refusal to comment on the matter it couldn’t immediately be determined what caused the underlying financial problems that prevented THE from paying its employee payroll taxes.
Ron Simmons, executive director of the D.C. AIDS service group Us Helping Us, which also receives city funding, said smaller community based groups like THE sometimes encounter cash flow problems when the city takes too long to reimburse the group for its services. He said DOH in the past has taken 90 days or longer to reimburse vendors and service providers.
“Among other things, they are the only LGBT homeless shelter for youth,” Simmons said. “We absolutely can’t let them go under,” he said of THE.
THE’s most recently filed IRS 990 finance report that is available for public viewing is for the fiscal year of Oct. 1, 2009 through Sept. 30, 2010.
The report shows that THE’s income for the year was $960,834 and its expenses came to $1,093,816, with a deficit of $132,982.
Rehoboth Beach
Officials raise troubling concerns about Rehoboth mayoral candidate Suzanne Goode
Homophobic emails, ‘aggressive’ behavior cited: ‘It just seems to be getting worse’
As Rehoboth Beach voters prepare to elect a new mayor on Aug. 8, some city officials and local residents are raising new concerns about the behavior of City Commissioner and mayoral candidate Suzanne Goode.
In addition to a history of troubling emails in which she has used homophobic language and criticized the city’s rainbow crosswalks, Goode is being accused of inappropriate behavior by a neighbor and a fellow Commissioner related to a dispute on the Nextdoor online platform.
The Blade spoke to City Manager Taylour Tedder, Commissioner Chris Galanty, and others about Goode’s behavior during her time as commissioner.
Goode was elected commissioner in August 2024. Fellow commissioner Susan Stewart, who is also running for mayor, criticized Goode’s behavior in a March 9, 2026 meeting, bringing up emails outlining Goode’s offensive conduct toward city staff.
In one email, Goode wrote to Rehoboth Beach City Solicitor Lisa Borin Ogden: “I am sorry that I learned from Google when you were first interviewed [in the] spring [of] 2025 that you are Jewish. My opinion of my fellow Jews declined significantly thanks to you since last summer. Actually would have thought you would have more compassion than the average person, based on your late brother. Except you don’t. I am sick of your haughty attitude toward me.”
In other emails, Goode questions why city officials encouraged CAMP Rehoboth and Clear Space Theatre to apply for grant funds. She has denigrated both institutions, referring to CAMP as a “questionable non-profit” and Clear Space as “second rate” with a “woke, drag queen bent” at times. She accuses Rehoboth’s LGBTQ community of displaying “their sex lives in public view” and fears physical violence from LGBTQ activists.
Goode disputed the claims and called for the city to remove Stewart’s remarks from the website.
The following statements were included in the emails sent by Goode:
• “Gays and theatre aficionados can donate as much as they like to these pet causes. Some taxpayers think the theatre is second-rate as community theatres go, and many dislike the RB emphasis on LGBTQ when heterosexuals don’t demand equivalent display of their sex lives in public view.”
• “Just because the LGBTQ community feels oppressed and discriminated against, that doesn’t mean that those who identify as LGBTQ are better able to recognize racial discrimination than someone like myself. It might surprise some of you to learn that I briefly dated an African American fellow college student.”
• “A performing arts and LGBTQ agenda isn’t appropriate for BOC spending when the city faces over $60M in debt.”
• “But there are some folks in town, who ironically have to remain in the closet (conservatives now have to do what gays had to do in the 20th century — ah, the irony) who object to the woke, drag queen bent of Clear Space at times. They have confided this in me, and thanked me for fighting for their tax dollars. Maybe I will regret speaking up, as some LGBTQ activist will attack me physically, even though I am a complete supporter of gay rights, and have as many gay male friends as female friends now that I live in RB with a large gay population.”
In the emails, Goode also referred to City Manager Tedder as “the mayor’s whore.”
Stewart told the Blade that the troubling behavior has since escalated.
Commissioner Chris Galanty spoke to the Blade about Goode’s behavior as commissioner and her issues with the rainbow crosswalks in town.
“Suzanne told me on two separate occasions that she didn’t like the rainbow crosswalks, and she said that she didn’t understand why they had to exist, and she didn’t understand why gay people had to advertise their sexuality, and she said straight people don’t have to do that.”
Galanty said that when he challenged her on this, she “moved very quickly to another topic.” He said that she has now shifted her perspective and is more concerned that the rainbow crosswalks are an issue of labor costs.
Goode told the Blade that, “Unfortunately, the rainbow crosswalks have potentially reduced the upkeep of the conventional crosswalks. But the rainbow crosswalks are attractive in and of themselves, and they do add to our recognition of Rehoboth’s longstanding status as a gay-friendly town.”
Accusations of “aggressive” behavior by Goode aren’t limited to emails. Last summer, Goode came to the home of Diana Jones, a property owner in Rehoboth Beach who is a neighbor of Galanty’s. Jones spoke to the Blade to share her experience with Goode.
Jones is active on Nextdoor, an online social network for neighborhoods. She said that she got involved on the platform during the time of the commissioners election last summer, in which her neighbor, Chris Galanty, was elected as commissioner.
Jones said that she made posts supporting Galanty. She said that someone posted a link of a lawsuit that involved Goode’s husband, Jeffrey Goode, who lost his race for commissioner last summer. Jones said that she reposted the link after it was taken down.
Jones said that the lawsuit was “very relevant to somebody who is running for city commissioner.”
Jones said that Suzanne Goode showed up at her house as a result of the post. Jones was out walking her dog nearby so Goode briefly spoke with Jones’s husband who was home.
“She came over to my house because she was saying I was doxing him,” said Jones. Jones said that Goode then found her as she was walking her dog and tried to talk to her about her Nextdoor posts, saying that she “brought up a very painful time in her life.”
Jones said that she has not had any communication with Goode since.
When asked for comment on the situation with Jones, Goode responded by saying “Diana Jones’s behavior toward me was despicable, and the way she has chosen to give her side of the story to news media says more about her than it will ever say about me.”
Galanty told the Blade that Goode came to his house in late June of this year when he was not home. She then called him about Jones.
“She relayed to me that she was having a disagreement with my neighbor on the Nextdoor platform, and she asked me to intercede with the neighbor,” said Galanty. “She said, ‘Please speak to her because I am frustrated with what she is saying. She needs to stop, and you need to say something to her.'”
Galanty said that Goode called him four times and texted him 32 times in the span of three and a half hours the next day.
Galanty said that he responded the next day, telling her that her behavior was inappropriate.
“Eventually it took a couple of weeks, but she apologized in her own way. She just said we just need to let it go.”
From his perspective as commissioner, Galanty said, “She likes to re-litigate things that have happened, six months ago, nine months ago. She likes to rehash issues that are in the past.”
“She can be really aggressive, and people are just really turned off by her,” said Galanty.
Tedder, who has accused Goode of creating a “hostile work environment,” told the Blade about his experiences working with Goode.
“She does not support the staff, and constantly tells us to resign,” said Tedder.
Tedder said that Goode texted City Solicitor Ogden at 7:45 a.m. on a Saturday, telling her to resign.
“Sometimes she does have good ideas. It’s just it gets so lost in these pages and pages of emails and thousands of emails that she sends,” said Tedder.
In regards to Goode’s behavior, Tedder said it has been going on since the beginning. “It just seems to be getting worse.”
Maryland
Advocates for trans students urge Md. to fight White House threats
Four school districts under federal investigation
By JESSICA CALEFATI | Allies of transgender children are urging state education officials to fight back against the Trump-Vance administration, which has threatened to punish a growing number of Maryland school districts over local policies that affirm students’ gender identities.
The advocates testified Tuesday morning before the Maryland State Board of Education — one day after the U.S. Education and Justice departments alleged that Anne Arundel County’s school system violated federal student privacy law by withholding a student’s gender identity from their parents. A spokesperson for the district said Monday legal counsel had not yet reviewed the claims and that the district had no further comment.
School districts in Prince George’s, Montgomery, and Frederick Counties were already under investigation for allegedly violating Title IX, the civil rights law that prohibits sex-based discrimination. The federal government last month threatened to revoke funding from the districts because they allow trans students to use restrooms and locker rooms that align with their identities.
The rest of this article can be read on the Baltimore Banner’s website.
Maryland
White House threatens Anne Arundel schools over gender identity policy
District faces possible legal action or loss of federal funding
By JESSICA CALEFATI | The Trump-Vance administration on Monday threatened to punish Anne Arundel County’s school system with legal action or the loss of federal funding for allegedly withholding information about a student’s gender identity and transition from the child’s parents.
The U.S. Education and Justice Departments together determined that the suburban Maryland district treats students’ gender identities as confidential medical information that cannot be shared with parents, in violation of federal student privacy law, according to a news release. A federal lawsuit filed against the district earlier this month made similar claims.
“As a mother and a grandmother, it is unconscionable that any school district would hide the most sensitive information about children in their care from their own parents,” U.S. Secretary of Education Linda McMahon said in a statement. “This is not only an affront to basic moral principles, but also to parents’ rights under federal law.”
The rest of this article can be read on the Baltimore Banner’s website.
