Local
DC trans group files for bankruptcy
T.H.E. seeks Chapter 11 protection; reports $566,000 in debt

Transgender activist and one of DC trans group T.H.E.’s founders, Earline Budd, is owed $4,615 in back wages. (Washington Blade file photo by Michael Key)
Transgender Health Empowerment, which has been recognized as D.C.’s preeminent organization advocating for and providing services to the transgender community since 2004, filed for Chapter 11 bankruptcy on July 7.
The 56-page bankruptcy filing came two months after the D.C. government revoked or suspended most of its contracts and grants for T.H.E. The cut off in funds came after D.C. officials learned the IRS filed tax liens against the group seeking to recover more than $260,000 in unpaid payroll taxes, possibly including penalties, that accumulated since 2008.
D.C. Mayor Vincent Gray, who praised T.H.E.’s work on behalf of the LGBT community, said the city was forced to withdraw its funding for the group under a “clean hands” policy that bars city funding for vendors and service providers found to be in violation of the law, including federal and local tax laws.
LGBT activists familiar with the group have said it ceased most of its operations and laid off nearly all of its employees at the time the city cut off its funding for the group.
T.H.E.’s bankruptcy filing with the United States Bankruptcy Court for the District of Columbia shows it has total remaining assets of $37,009 and liabilities totaling $566,544.26.
The filing identifies the IRS as the single largest creditor, showing the group owes $264,247.91 in employee federal payroll taxes between 2008 and 2013. The filing shows T.H.E. owes the D.C. government $22,485 in employee withholding taxes and $15,663 in D.C. “unemployment” taxes.
The group owes the State of Maryland $8,695 in “employment taxes/withholding” for 2012 and 2013, according to the bankruptcy filing.
Under the U.S. bankruptcy law, a Chapter 11 filing allows a business or organization to obtain temporary relief from paying its creditors while it reorganizes its corporate structure and works out a plan with creditors to eventually repay the debt.
Records filed with the bankruptcy court show that a meeting of creditors is scheduled to take place at the court, located at 333 Constitution Ave., N.W., at 3 p.m. on Aug. 8.
In a press release issued on Wednesday, T.H.E. discussed its financial problems for the first time since news of its money problems surfaced earlier this year.
“Transgender Health Empowerment (T.H.E.), a non-profit group that has provided a wide range of services for D.C.’s TGLB (Transgender, Gay, Lesbian and Bisexual) HIV+ and homeless community since 2004 has been struggling with financial challenges that have prompted us to curtail some services and suspend others,” the press release says.
“Communicating with our community and clients is of utmost importance to the Board of Directors, along with overseeing solid organization recovery,” it says.
The release, however, makes no mention of the bankruptcy filing, saying only, “Our renewed goal is to protect the organization financially to ensure that programs and services that are being provided have adequate support and to ensure that the actions of those we entrust adhere to the policies and direction set by the Board of Directors.”
Although T.H.E. has not published the names of its board members since its website was shut down earlier this year, the bankruptcy filing identifies 11 people as current board members. Among those identified as board members in the filing is D.C. Council member Jim Graham (D-Ward 1).
However, Graham told the Blade on Tuesday that he is not now and has never been a T.H.E. board member. Instead, Graham said he has served on a T.H.E. advisory committee.
The filing identifies Rhonda Steward as interim chair of the board, Marjorie Borders as secretary and Rodney Pierce as treasurer. Gay Democratic activist Bradley Lewis is listed as a member of the board.
The T.H.E. press release, which appears to have been issued by the board, doesn’t mention the role the group’s executive director for over five years, Anthony Hall, will play in the reorganization.
Hall and other T.H.E. officials have declined to respond to requests by the Blade since May for an explanation of the root causes of the organization’s financial problems.
A document obtained by the Blade from the D.C. Department of Health through a Freedom of Information Act request, says the DOH decided in early May to discontinue its funding for T.H.E. after learning that the IRS had filed tax liens against the group and its financial prospects were grim.
The April 24 document, identified as a Programmatic Site Visit Report, says Hall told DOH officials during their visit to T.H.E.’s headquarters at 3339 10th Place, S.E., that much of the group’s financial problems stemmed from outstanding debts with the IRS and D.C. and Maryland tax offices related to unpaid payroll withholding taxes.
“This, he mentioned, was the result of incorrect filings of successive accountants,” the DOH report says. “He has since contracted with Wells Fargo Bank to manage the organization’s payroll and remit all withholdings and related tax obligations.”
But according to the report, “T.H.E. has no cash on hand and does not appear to have a realistic chance of working out a resolution with the IRS…Many of their staff has already been laid off and a limited few are volunteering to perform limited duties,” it says.
“Their clients are already impacted and have limited or no servicers…In all practicality, T.H.E. has already shut their doors and cannot even be paid were they to invoice further.”
The report recommended that all DOH sub-grants “be suspended immediately and appropriate providers identified to provide the services.”
Among the other creditors listed in the bankruptcy filing are 23 mostly former employees who are owed back wages ranging from between $3,000 and just over $5,000. Included among them are longtime transgender activist and one of T.H.E.’s founders, Earline Budd, who is owed $4,615 in back wages. Gay activist Brian Watson, who has served as a T.H.E. program officer, is owed $5,653, according to the bankruptcy filing.
Delaware
Democrat Maureen ‘Mo’ Madden takes on longtime GOP stronghold in Delaware’s 38th
Out lesbian candidate for state House focused on infrastructure needs, voting rights
Democrat Maureen “Mo” Madden is running for the Delaware House of Representatives in the 38th District, seeking to win a seat that has been held by Republicans for more than two decades.
The race opened up after Republican state Rep. Ron Gray announced in April that he would not seek reelection after seven terms in the General Assembly.
Gray was first elected in 2012 and represents communities including Bethany Beach, Fenwick Island, Selbyville and Ocean View. Madden, a Dagsboro resident, filed to run for the seat in 2025.
Madden is a retired federal civil servant who spent nearly 23 years at NASA and more than seven years at the National Oceanic and Atmospheric Administration. She holds a master’s degree in physics and previously worked in leadership at NOAA.
She said her professional experience taught her the importance of working collaboratively, something she believes would translate to the legislature.
“Advocating, negotiating, and collaborating are all skills that a legislator needs,” she said. “You learn to collaborate. You learn to negotiate. You learn to advocate for your budget, for your team, and for your projects.”
Madden said her decision to run began after she and her wife moved to the area and she noticed the lack of Democratic candidates on the ballot in her district.
“Somebody’s got to do it, and I’ve got time. I’m retired,” said Madden.
She acknowledged the difficulty of running as a Democrat in the district, which has been represented by Republicans since 2002.
Madden said one of the biggest concerns she hears from residents is the rapid growth of Sussex County.
“We have a massive amount of growth and a massive amount of development,” said Madden.
Madden said the growth has placed additional pressure on roads, schools, emergency services, as well as water and sewer infrastructure.
“We need to find a way to bring more money down here for the school system and for the infrastructure that we need,” she said.
She also raised concerns about the impact of new developments on existing neighborhoods, particularly in regard to flooding and drainage.
“Something needs to be done,” said Madden.
Madden also pointed to climate change as a factor affecting the region.She said the state will need to work on both addressing development and preparing communities for increasingly severe weather.
“We have to work both sides of it,” Madden said.
Madden said improving infrastructure would be a priority if she is elected, particularly roads and other infrastructure that affect residents’ daily lives.
“I want to increase the safety of my neighbors,” she said.
Madden also said she wants to address infrastructure needs related to water and sewer service, as well as the availability of health care in the rapidly growing coastal region.
Madden said protecting voting rights would be another priority in the legislature.
“The right to vote is one of the biggest things that we have here in a democracy,” she said.
She said that she supports early voting, mail-in voting, and same-day registration, as well as restoring voting rights to people who have completed felony sentences.
“You should not lose a constitutional right because you’ve been in jail,” said Madden.
“Protecting the right to vote is how I will defend democracy when I get to the state House,” she said.
Madden said she would also support efforts to enshrine certain rights in the Delaware Constitution, including reproductive rights, voting rights, and the right to marriage.
“Those three protections of our freedoms that are right now under attack need to be more secure in the Delaware State Constitution,” she said.
As an openly lesbian candidate, Madden said LGBTQ+ rights are important to her, particularly the treatment of young transgender people.
She said she is concerned about efforts to restrict transgender students’ participation in sports and other policies affecting transgender people.
“They are picking on the most vulnerable of the most vulnerable,” said Madden.
She said she hopes voters will view LGBTQ+ people as part of their communities rather than as fundamentally different from their neighbors.
“We’re your neighbors. We’re your friends. We’re your family,” she said.
Madden will face Republican Carlie Carey in the general election on Nov. 3.
The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected].
It is exciting to write about Nick Tsusaki, the founder and owner of Spark Social, 2009 14th St., N.W. Tsusaki just announced the official opening, on Sunday, Aug. 23, of a new daytime event, called Spark Coffee Club, a great opportunity to meet up with friends, or meet new ones. It is in partnership with Go Gay DC and runs 12-1 p.m., every Sunday. If you are new to D.C., you can browse more than 180 local LGBTQ+ community groups Tsusaki has listed on the community tab of his website: spark-dc.com/community.
“I’ve been out for most of my life, but it wasn’t until I started working in queer spaces, surrounded by queer people, that I really felt proud, even lucky, to be gay,” he said. “I hope Spark is a place where more people come to that same realization.”
Tsusaki went to Georgetown for his undergraduate studies, and spent four years doing Navy ROTC, then went into the Navy. He told me, “Town was the first gay bar I ever went to. It was always such a liberating and euphoric experience, I knew I wanted to come back to D.C. permanently, after the Navy.”
During his eight years in the Navy, Tsusaki spent time in among other places, Bahrain, and Korea. He was D.C. operations manager, where he managed large, diverse teams, across multiple countries, supervising logistics, scheduling, safety protocols, and daily operational readiness. He also directed emergency response and crisis management operations, including White House support, COVID-19 response planning, and major safety and security protocols protecting tens of thousands of personnel.
Tsusaki recounted, “When I left the Navy in 2023, I applied to every gay bar in the city. Fortunately, Shakers, was just opening at that time, and I started as a barback on the opening team. My appreciation for the D.C. LGBTQ+ community, and LGBTQ+ spaces only grew as I worked with and met some of the most hilarious, talented, proud, diverse, and supportive people in my life. After just a year in the industry, my passion had grown so strong I decided I wanted to open my own venue.”
Tsusaki then built Spark Social, and now supervises a 20-person team across café, bar, retail, and nightlife operations, ensuring strong safety standards, clear procedures, and consistent guest experience. He has developed a deeply trusted neighborhood presence through strong community partnerships, resulting in a 4.9 Google rating with 120+ reviews. He created an innovative 1-for-1 cocktail menu offering alcoholic and non-alcoholic options, with equal quality and presentation, and promotes an inclusive nightlife for non-drinkers. He has established Spark as a unique market leader in LGBTQ+ hospitality, combining daytime café culture, with late-night programming, and community-centered events. So, whether you go for the new community coffee hour on Sundays, or any other time, Spark Social is a place where you will feel comfortable.
Tsusaki earned his bachelor’s of science degree in foreign service, Georgetown University; and master’s in business analytics from the University of Virginia, Darden School of Business.
Maryland
Anne Arundel schools updates gender identity regulation following Trump administration threats
District facing federal lawsuit, White House threats over guidelines
By JESSICA CALEFATI | Under pressure from the Trump-Vance administration, Anne Arundel County Public Schools Supt. Mark Bedell announced Wednesday the district had updated a regulation intended to protect transgender students’ right to be called by their chosen name.
The revised language makes clear that district rules on gender identity do not block parents’ rights under the Family Educational Rights and Privacy Act as the federal government alleged last month, and that a student’s gender identity will not be treated as confidential medical information.
“No policy, guideline, or practice may limit or otherwise interfere with parental rights under FERPA,” Bedell wrote in a Wednesday letter to the community. “This includes any information maintained in education records that relates to gender identity, transgender status, sexual orientation, preferred name, or preferred pronouns.”
The rest of this article can be read on the Baltimore Banner’s website.
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