National
LGBT, AIDS cuts held off two months under ‘fiscal cliff’ deal
Advocates to press need for programs in coming weeks

Vice President Joe Biden and President Barack Obama appeared at the White House last night to discuss the fiscal cliff deal (Washington Blade file photo by Michael Key)
The legislative package that Congress passed this week to avert the “fiscal cliff” puts off for only two months devastating across-the-board budget cuts to federal programs — including programs directly relevant to LGBT people and people with HIV/AIDS — putting advocates in the position to continuing fighting for them in the weeks to come.
The deal, known as the Biden-McConnell plan because it was negotiated by Vice President Joseph Biden and Senate Minority Leader Mitch McConnell, raises an estimated $620 billion in revenue for the U.S. government. It continues the Bush-era tax cuts for lower and middle-class income households while eliminating them for individuals making more than $400,000 a year and married couples making more than $450,000.
Immediately following House passage of the bill, Obama delivered a statement at the White House saying passage of the plan fulfills his campaign promise to adjust a tax code that favored the wealthy at the expense of fiscal health for the country — although he had campaigned on letting tax cuts expire households with a lower income of $250,000 a year.
“Thanks to the votes of Democrats and Republicans in Congress, I will sign a law that raises taxes on the wealthiest 2 percent of Americans while preventing a middle-class tax hike that could have sent the economy back into recession and obviously had a severe impact on families all across America,” Obama said.
Some spending cuts are also in the plan. The agreement saves $12 billion, half in revenue and half from spending cuts which are divided equally between defense and non-defense programs. But the plan also places a two-month hold on the much larger sequester instituted under the Budget Control Act of 2011 in automatic cuts that were supposed to take effect on Wednesday.
Under the proposed cuts, $1.2 trillion would be cut for the U.S. government across-the-board for starting this year over the course of 10 years. An estimated 8.2 percent in the first year would be cut from discretionary federal programs, including HIV/AIDS and LGBT-related programs.
The cuts could be particularly devastating to individuals with HIV/AIDS who receive medication through AIDS Drug Assistance Programs. Some estimates predict that proposed cuts could lead to up to 12,000 people being placed on waiting list for drugs. Also on the cutting board may be housing provided to low-income people with AIDS.
Carl Schmid, deputy executive director for the AIDS Institute, said HIV/AIDS advocates will have to continue fighting to ensure an alternative plan is proposed that would stave off these massive cuts.
“We will still have to work to protect our programs over the next couple of months,” Schmid said. “I don’t see an appetite to address taxes again so they will have to address the spending side and entitlements along with the debt limit in the new Congress.”
Exemptions to theses cuts include to Medicaid — a program under which an estimated 50 percent of people with HIV/AIDS reductions rely on for support — as well as Social Security. Medicare cuts would be limited to a 2 percent reduction to providers.
The proposed cuts could also interfere with the investigation and prosecution of hate crimes against LGBT people and reduce or possibly eliminate funds for programs like the National LGBT Aging Resource Center and the LGBT Refugee Resource Center could be reduced.
LGBT groups — including Human Rights Campaign and the Center for American Progress — acknowledged that their fight to preserve funding for these programs continues despite the deal reached this week.
Michael Cole-Schwartz, an HRC spokesperson, said his organization has no position on the deal overall, but supports putting off the sequester to make more a balanced approach to spending cuts at a later time.
“HRC does not have a position on the overall package,” Cole-Schwartz said. “However we support the delay in the sequestration cuts which would be devastating to our community and will be working with the new Congress to mitigate the impact of budget cuts as they take up the issue over the coming months.”
Jeff Krehely, the Center for American Progress’ vice president of LGBT research at the Center for American Progress, also had no comment on the overall deal, but expressed concern the way sequestration is being discussed in current debate.
“I can say that I remain concerned that the current conversation seems detached from the real-world impacts that sequestration could have on vulnerable populations,” Krehely said. “It also seems increasingly likely that advocates will have to continue to engage on these issues for the near-term, at least. It’s not going to be wrapped up neatly anytime soon.”
In November, a coalition of 25 organization led by Center for American Progress and the National Gay & Lesbian Task Force issued a report detailing how the proposed would impact hurt LGBT employment discrimination claims, limit the ability of the federal government to address the high rate of homelessness among LGBT youth and reduce funds for programming directed at LGBT health.
Obama in his White House statement seemed intent on pursuing additional cuts to federal programs — saying he agrees Medicare is “the biggest contributor to our deficit” — while he added the country “can’t simply cut our way to prosperity.”
“Cutting spending has to go hand-in-hand with further reforms to our tax code so that the wealthiest corporations and individuals can’t take advantage of loopholes and deductions that aren’t available to most Americans,” Obama said. “And we can’t keep cutting things like basic research and new technology and still expect to succeed in a 21st century economy.
One anti-gay group is expressing outright opposition the deal. Before the House voted on the measure Tuesday night, Tony Perkins, president of the Family Research Council, issued a statement decrying the measure for not addressing entitlement reform or introducing significant spending cuts.
“This deal fails the American people by allowing for more runaway spending from the federal government,” Perkins said. “President Obama has made it clear he has no real intention to address Washington’s out of control spending problem. By voting for this package, Congress gives the green light to finance his liberal agenda and further burden taxpayers.”
Perkins also took issue with what he said was a tax penalization for married couples that will result in the deal.
“Research out of Family Research Council’s Marriage and Religion Research Institute routinely shows that married couples with children create the most capital and generate the most income on average,” Perkins said. “This economic activity leads to higher revenue for government and more capital for economic expansion. Why then would we penalize marriage? We should be encouraging family formation, not penalizing it.”
This complaint of tax penalization against marriage comes from one of the chief organizations working to prevent legalization of marriage for same-sex couples.
Another provision in the bill also would have an impact on wealthy married same-sex couples in comparison to their straight counterparts. The agreement raises the tax rate on the wealthiest estates – those worth upwards of $5 million per person – from 35 percent to 40 percent.
Because of the Defense of Marriage Act, gay Americans in same-sex marriage who are wealthy enough will have to have pay this estate tax to receive the inheritance of their spouse, unlike straight Americans in the same situation. New York widow Edith Windsor is challenging DOMA before the Supreme Court on the basis that she had to pay $363,000 in estate taxes upon the death of her spouse, Thea Spyer.
According to a November 2009 report from the Williams Institute, this differential treatment of gay and married couples in the estate tax code was set to affect an estimated 73 same-sex couples that year, costing them each, on average, more than $3.3 million.
Jimmy LaSalvia, executive director of the conservative group GOProud, has been an opponent of the estate tax and said the hike continues a discriminatory policy that was already made permanent in Democrats in years past.
“We said two years ago when Nancy Pelosi and Harry Reid passed legislation to make the estate tax permanent, that it is ‘discrimination by taxation,'” LaSalvia said. “These changes certainly twist that knife.”
CORRECTION: An initial version of this article misstated the terms for tax increases under the “fiscal cliff” plan. The Blade regrets the error.
Texas state Rep. James Talarico won a hard-fought primary Tuesday to become the state’s Democratic nominee for U.S. Senate, defeating U.S. Rep. Jasmine Crockett in one of the year’s most closely watched and competitive Democratic contests.
Talarico, a Presbyterian seminarian and three-term lawmaker from Round Rock, was declared the winner by the Associated Press early Wednesday morning after a closely tracked vote count that drew national attention.
“Tonight, the people of our state gave this country a little bit of hope,” Talarico told the AP. “And a little bit of hope is a dangerous thing.”
With 52.8% of the vote to Crockett’s 45.9%, Talarico secured the nomination outright, avoiding a runoff and capping months of sharp contrasts between the two candidates over strategy, messaging, and how best to compete statewide in Texas. Democrats hope the competitive primary — and the relatively narrow margin — signals growing momentum in a state that has not elected a Democrat to the U.S. Senate since 1988.
Talarico has long expressed support for the LGBTQ community, a position he highlights prominently on his campaign website. Under the “Issues” section, he directly addresses assumptions that might arise from his faith and background as a seminarian in a deeply conservative state.
“My faith in Jesus leads me to reject Christian Nationalism and commit myself to the project of democracy,” his website reads. “Because that’s the promise of America: a democracy where every person and every family — regardless of religion, race, gender, sexual orientation, or any other difference between us — can truly be free and live up to their full potential.”
Crockett struck a conciliatory tone following her defeat, emphasizing party unity ahead of November.
“This morning I called James and congratulated him on becoming the Senate nominee,” Crockett told Politico. “Texas is primed to turn blue and we must remain united because this is bigger than any one person. This is about the future of all 30 million Texans and getting America back on track.”
Talarico also drew national attention earlier in the race when “Late Show” host Stephen Colbert said he was initially unable to air an interview with the state legislator due to potential FCC concerns involving CBS. The episode sparked a broader political debate.
Brendan Carr, chair of the Federal Communications Commission, appointed by President Donald Trump, told reporters the controversy was a “hoax,” though he also acknowledged Talarico’s ability to harness the moment to build support as an underdog candidate. The interview was later released online and garnered millions of views, boosting Talarico’s national profile.
In November, Talarico will face the winner of the Republican primary between incumbent Sen. John Cornyn and Texas Attorney General Ken Paxton, who have been locked in a bruising GOP contest. Rep. Wesley Hunt was also in the Republican primary field. The GOP race is expected to head to a May runoff.
In a joint statement, Senate Minority Leader Chuck Schumer and Democratic Senatorial Campaign Committee Chair Kirsten Gillibrand praised Talarico’s victory and framed him as a candidate capable of broad appeal.
“As an eighth-generation Texan, former middle school teacher, and Presbyterian seminarian, James will be a fighter for Texans from all walks of life and of all political stripes,” they said. “In November, Texans will elect a champion for working people: James Talarico.”
National
Peter Thiel’s expanding power — and his overlap with Jeffrey Epstein
Gay billionaire’s name appears 2,200 times in files, but no criminality alleged
There are few figures in modern politics whose reach extends across Silicon Valley, Wall Street, and Washington, D.C., as Peter Thiel’s.
A billionaire venture capitalist, Thiel built his fortune at the dawn of the internet age and has since positioned himself at the highest levels of U.S. technology, finance, and national defense infrastructure. He is best known as a co-founder of PayPal, an early investor in Facebook, and the co-founder of Palantir Technologies — a data analytics firm that maintains significant contracts with U.S., U.K., and Israeli defense and intelligence agencies.
Over the last two decades, Thiel has also built an interconnected network of investment vehicles — Clarium Capital, Founders Fund, Thiel Capital, Valar Ventures, and Mithril Capital — giving him influence over emerging technologies, political candidates, and ideological movements aligned with his worldview. Through these firms, Thiel has backed companies in artificial intelligence, defense technology, biotech, cryptocurrency, and financial services, often positioning himself early in sectors that later became central to public policy debates.
Born in Frankfurt, West Germany, in 1967, Thiel immigrated to the United States as an infant. He later attended Stanford University, earning a degree in philosophy before graduating from Stanford Law School in 1992. As an undergraduate, he founded The Stanford Review, a conservative student publication that opposed what it described as campus “political correctness.” The paper became a platform for combative and contrarian arguments that previewed themes Thiel would revisit in later essays and speeches about elite institutions, democracy, and technological stagnation.
Thiel’s professional ascent coincided with the explosive growth of the dot-com era. In 1998, he co-founded PayPal, helping pioneer digital payment systems that would become foundational to online commerce. When the company was sold to eBay in 2002 for $1.5 billion, Thiel emerged a multimillionaire and part of what would later be known as the “PayPal Mafia” — a loose but influential network of founders and early employees who went on to launch or invest in some of Silicon Valley’s most dominant firms.
In 2004, Thiel made one of the most consequential investments of his career, providing $500,000 in seed funding to Facebook, then a fledgling social network founded by Mark Zuckerberg. He became the company’s first outside investor and later served on its board. That early bet proved extraordinarily lucrative and cemented Thiel’s status as a major venture capitalist with a reputation for identifying transformative platforms before they reached scale.
The same year, he co-founded Palantir Technologies. Initially backed in part by In-Q-Tel, the CIA’s venture capital arm, Palantir developed software — including its Gotham platform — designed to help defense, intelligence, and law enforcement agencies integrate and analyze massive datasets. The company’s tools allow users to map relationships, identify patterns, and visualize complex networks across financial records, communications data, and other digital trails.
Over time, Palantir secured billions of dollars in public-sector contracts. It has worked with the U.S. Department of Defense, Immigration and Customs Enforcement, the Centers for Disease Control and Prevention, and allied governments abroad. Public reporting has documented that its global government contracts exceed $1.9 billion, including agreements with Israeli defense entities — relationships that reportedly expanded following the Oct. 7 attacks in Israel. Critics have raised concerns about civil liberties and surveillance, while supporters argue the company provides essential national security tools.
By the mid-2000s, Thiel was no longer simply a wealthy entrepreneur. He was a financier operating at the intersection of capital, advanced technology, and government — with investments embedded in some of the country’s most sensitive security systems. His political giving would later extend that influence further, including support for candidates aligned with his populist and nationalist leanings– notably Donald Trump in 2016.
As his wealth and influence expanded, so too did his proximity to other powerful — and, in some cases, controversial — figures in global finance.
Among them was Jeffrey Epstein.
Thiel’s name appears more than 2,200 times in documents released so far by the U.S. Department of Justice related to Epstein. A name appearing in legal filings does not, by itself, indicate wrongdoing. However, the extensive references illustrate that Epstein’s social and financial network intersected with elite figures in technology, academia, politics, and finance — including individuals connected to Thiel’s business and philanthropic circles.
Epstein’s legal troubles became public in 2005, when police in Palm Beach, Fla., investigated allegations that he had sexually abused a minor. In 2008, he pleaded guilty in state court to soliciting prostitution from a minor under a plea agreement that was widely criticized as unusually lenient. He served 13 months in county jail with work-release privileges and was required to register as a sex offender. Comparable federal charges can carry significantly longer sentences.
Despite that conviction, Epstein continued to maintain relationships with prominent business and political figures for years. The extent to which members of elite networks remained in contact with him after his guilty plea has been the subject of extensive scrutiny.
Documents released by the Justice Department indicate that individuals connected to Thiel’s philanthropic and investment circles communicated with Epstein after his conviction. One document shows an invitation, sent on behalf of the Thiel Foundation, for Epstein to attend a technology event in San Francisco. Additional financial records and reporting indicate that between 2015 and 2016, Epstein invested approximately $40 million in funds managed by Valar Ventures, one of Thiel’s firms. Other records reflect meetings and correspondence, at times arranged through intermediaries. Epstein also extended invitations to his Caribbean residence.
There is no evidence that Thiel was involved in Epstein’s criminal conduct. The documented interactions do, however, show numerous planned meetings between the two both in the Caribbean (where Epstein’s infamous island is located) and across the world, while also raising questions about why business relationships continued after Epstein had pleaded guilty to a sex offense involving a minor and was a registered sex offender. For critics, that continued engagement speaks to the insular nature of elite finance, where access to capital and networks can override reputational risk.
Palantir represents another overlap. In emails made public through Justice Department releases, Epstein referenced Palantir in correspondence with Ehud Barak, the former Israeli prime minister who also maintained ties to Epstein. The emails do not indicate that Epstein had operational involvement in Palantir or access to its systems, however, they show that he discussed one of Thiel’s most strategically significant companies — a firm deeply integrated into Western defense and intelligence systems — with senior political figures abroad.
Separately, Thiel’s long-running dispute with Gawker Media offers additional insight into how he has exercised power outside traditional political channels.
After Gawker published an article in 2007 that publicly identified Thiel as gay, he later secretly funded litigation brought by professional wrestler Hulk Hogan over the outlet’s publication of a sex tape. The lawsuit resulted in a $140 million judgment against Gawker, which ultimately filed for bankruptcy. Thiel later confirmed his financial backing of the case, framing it as a defense of privacy and a response to what he considered reckless media behavior.
The episode demonstrated Thiel’s willingness to deploy substantial financial resources strategically and, at times, discreetly. It also illustrated how wealth can be used to influence institutions — whether through venture capital, political donations, or litigation.
Taken together, the record does not establish criminal liability for Thiel in connection with Epstein. It does, however, situate him within a dense web of elite finance, national security contracting, political influence, and reputation management. As additional documents related to Epstein continue to emerge, that web — and the decisions made within it — remains a subject of public interest and ongoing scrutiny.
National
Supreme Court deals blow to trans student privacy protections
Under this ruling, parents are entitled to be informed about their children’s gender identity at school, regardless of state protections for student privacy.
The Supreme Court on Monday blocked a California policy that allowed teachers to withhold information about a student’s gender identity from their parents.
The policy had permitted California students to explore their gender identity at school without that information automatically being disclosed to their parents. Now, educators in the state will be required to inform parents about developments related to a student’s gender identity, depending on how the case proceeds in lower courts.
The case involves two sets of parents — identified in court filings as John and Jane Poe and John and Jane Doe — both of which say their daughters began identifying as boys at school without their knowledge, citing religious objections to gender transitioning.
The Poes say they only learned about their daughter’s gender dysphoria after she attempted suicide in eighth grade and was hospitalized. After treatment for the attempt and after being returned to school the following year, teachers continued using a male name and pronouns despite the parents’ objections, citing California law. The Poes have since placed their daughter in therapy and psychiatric care.
Similarly, the Does say their daughter has intermittently identified as a boy since fifth grade, but while their daughter was in seventh grade, they confronted school administrators over concerns that staff were using a male name and pronouns without informing them. The principal told them state law barred disclosure without the child’s consent.
Both sets of parents filed lawsuits in the U.S. District Court for the Southern District of California challenging the state policy that protects students’ gender identity and limits when schools can disclose that information to parents.
The justices voted along ideological lines, with the court’s six conservative members in the majority and the three liberal justices dissenting.
“We conclude that the parents who seek religious exemptions are likely to succeed on the merits of their Free Exercise Clause claim,” the court said in an unsigned order. “The parents who assert a free exercise claim have sincere religious beliefs about sex and gender, and they feel a religious obligation to raise their children in accordance with those beliefs. California’s policies violate those beliefs.”
In dissent, the three liberal justices argued that the case is still working its way through the lower courts and that there was no need for the high court to intervene at this stage. Justice Elena Kagan wrote, “If nothing else, this Court owes it to a sovereign State to avoid throwing over its policies in a slapdash way, if the Court can provide normal procedures. And throwing over a State’s policy is what the Court does today.”
Conservative Justices Samuel Alito and Clarence Thomas indicated they would have gone further and granted broader relief to the parents and teachers challenging the policy.
The emergency appeal from a group of teachers and parents in California followed a decision from the United States Court of Appeals for the Ninth Circuit that allowed the state’s policy to remain in effect. The appeals court had paused an order from U.S. District Judge Roger Benitez — who was nominated by George W. Bush — that sided with the parents and teachers and put the policy on hold.
The legal challenge was backed by the Thomas More Society, which relied heavily on a decision last year in which the court’s conservative majority sided with a group of religious parents seeking to opt their elementary school children out of engaging with LGBTQ-themed books in the classroom.
California Attorney General Rob Bonta expressed disappointment with the ruling. “We remain committed to ensuring a safe, welcoming school environment for all students while respecting the crucial role parents play in students’ lives,” his office said in a statement.
The decision comes as the Trump administration has taken a hardline approach to transgender rights. During his State of the Union address last week, President Donald Trump referenced Sage Blair, who previously identified as transgender and later detransitioned, describing Blair’s experience transitioning in a public school. According to the president, school employees supported Blair’s chosen gender identity and did not initially inform Blair’s parents.

Last year, the court upheld Tennessee’s ban on gender-affirming medical care for transgender minors and has allowed enforcement of a policy barring transgender people from serving in the military to continue during Trump’s second term.
