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Trans group struggles with financial crisis

T.H.E. hit by IRS tax liens, possible suspension of city funds

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Earline Budd, T.H.E., Transgender Health Empowerment, gay news, Washington Blade
Earline Budd, transgender activist, Washington DC

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.

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Maryland

FreeState Justice launches 501(c)(4) group

FreeState Equality will focus on policy and advocacy

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(Washington Blade photo by Michael Key)

FreeState Justice, an LGBTQ organization that provides legal services, community programs, and public education in Maryland, announced the launch of FreeState Equality on Wednesday.

The new, independent organization intends to pursue advocacy and policy work beyond the legal capability of FreeState Justice, a 501(c)(3) non-profit. FreeState Equality functions as a 501(c)(4) organization, meaning it can partake in political activity.

“We are committed to transparency throughout this process and look forward to continuing our work together in service of LGBTQ+ Marylanders,” said FreeState Justice Executive Director Phillip Westry.

FreeState Equality will take on policy, advocacy, and civic engagement initiatives while FreeState Justice will pursue legal and direct-service work, according to Westry.

While both organizations adhere to similar values, they will feature separate leadership, operations and compliance.

FreeState Equality is hosting its first launch fundraiser on Dec. 10 at the Brass Tap in Baltimore. The event, held from 5-7 p.m., will feature insight from FreeState Equality staff about how Maryland policy can support the state’s LGBTQ community. 

Attendees can purchase fundraiser tickets on Zeffy for $25 general admission, which includes a free first drink. The organization also welcomes additional donations.

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Maryland

Md. House speaker stepping down

Adrienne Jones has been in position since 2019

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Maryland House of Delegates Speaker Adrienne Jones stepped down from her leadership post on Dec. 4, 2025. (Photo by Ulysses Muñoz for the Baltimore Banner)

By LEE O. SANDERLIN, PAMELA WOOD and BRENDA WINTRODE | Maryland House of Delegates Speaker Adrienne A. Jones, the first woman and first person of color to hold her position, stepped down from her leadership post Thursday, effective immediately.

Jones, 71, has been a member of the legislature since 1997 and ascended to the top role in 2019 following the death of longtime House Speaker Michael E. Busch.

Jones held a meeting with top House Democratic leaders Thursday afternoon, sources said, at which she informed them of her decision. In a statement, Jones described the changes of life’s seasons and said she was ready to focus on what lies ahead.

The rest of this article can be found on the Baltimore Banner’s website.

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District of Columbia

Activists praise Mayor Bowser’s impact on city, LGBTQ community

‘She made sure LGBTQ residents knew they were seen, valued, loved’

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Mayor Muriel Bowser has one more year in her term but announced she will not seek re-election next year. (Washington Blade file photo by Michael Key)

Members of D.C.’s LGBTQ community offered their thoughts on the impact Mayor Muriel Bowser has had on them, the city,  and LGBTQ people in statements and interviews with the Washington Blade in the week following Bowser’s announcement that she will not run for re-election in 2026.

Bowser’s Nov. 25 announcement came during the third year of her third four-year term in office as mayor and after she served as a member of the D.C. Council representing Ward 4 from 2007 to Jan. 2, 2015, when she took office as mayor.

The LGBTQ activists and mayoral staffers who spoke to the Blade agreed that Bowser has been an outspoken and dedicated supporter on a wide range of LGBTQ-related issues starting from her time as a Council member and throughout her years as mayor.

Among them is one of the mayor’s numerous openly LGBTQ staff members, Jim Slattery, who has served in the Cabinet-level position as the Mayor’s Correspondence Officer since Bowser first became mayor. 

“As Mayor Muriel Bowser’s longest serving LGBTQIA+ staffer – dating back to her first term as the Ward 4 Council member – and a proud member of her Cabinet since day one of her administration, I have had the opportunity to witness her at work for the people she serves and leads,” Slattery said in a statement. “Noteworthy is that throughout the entirety of my 27 years in District government, I have always been able to do so as an out and proud gay man,” he stated.

Slattery added that he has witnessed first-hand Bowser’s “absolute belief” in supporting the LGBTQ community. 

Mayor Muriel Bowser, center, joins Jim Slattery and Andrew McCarty at the 2015 Brother, Help Thyself grant awards ceremony. (Washington Blade file photo by Michael Key)

“She has led on HIV/AIDS prevention and treatment, on shelter for vulnerable members of our community, housing for older members of the community, and has been a reliable and constant presence at events to LGBTQIA+ residents,” Slattery said. Among those events, he said, have been World AIDS Day, the D.C. Pride Parade, the 17th Street LGBTQ High Heel Race, and WorldPride 2025, which D.C. hosted with strong support from the mayor’s office.

Ryan Bos, CEO & president of Capital Pride Alliance, the D.C. group that organizes the city’s annual LGBTQ Pride events and served as lead organizer of WorldPride 2025, praised Bowser for being a longtime supporter of that organization.

“She played a very supportive role in helping us as an organization grow and to be able to bring WorldPride to Washington, D.C.,” Bos told the Blade. “And we commend her years of service, And our hope is that she helps us to continue to advocate for the support from the D.C. government of the LGBTQ+ community, especially during these times,” Bos said.

Bos, who was referring to the Trump administration’s hostility toward LGBTQ issues and sharp cutbacks in federal funds for nonprofit organizations, including LGBTQ organizations, said Capital Pride Alliance appreciated  Bowser’s efforts to provide city funding for events like WorldPride.

“She provided support through the event process of WorldPride and ultimately along with the D.C. Council provided necessary funding to ensure WorldPride was a success,” Bos said. “And we are proud that we are able to show that Capital Pride and WorldPride had such a large economic impact for D.C. and the D.C. government,” he added. 

Marvin Bowser, Mayor Bowser’s gay brother who operates a local photography business and has been active in the D.C. LGBTQ community for many years,  said he has also witnessed first-hand his sister’s support for the LGBTQ community and all D.C. residents since the time she became a Council member and even before that.

Among his vivid memories, he said, was his sister’s strong support for the marriage equality law legalizing same-sex marriage in D.C. that the Council approved in 2009 under then-Mayor Adrian Fenty.

“I remember the first time she was standing up and giving clear and unequivocal support to the community when that law passed,” Marvin Bowser told the Blade. “And she was front and center in speaking very strongly in support of marriage equality,” he said.

Marvin Bowser also credits his sister with expanding and strengthening the then-Mayor’s Office of GLBT Affairs, among other things, by appointing advocate Sheila Alexander Reid as the office’s director in 2015. 

Reid, who for many years prior to becoming director of the GLBT Affairs office was founder and publisher of the national lesbian publication Women In The Life, had the reputation of a “rock star,” according to Marvin Bowser.

He recalls that Mayor Bowser also played a lead role in D.C.’s bid to host to the quadrennial international LGBTQ sports competition Gay Games for 2022.

D.C lost its bid for the 2022 Gay Games after the Federation of Gay Games selected Hong Kong to host the event in an action that Marvin Bowser says was unfair and based on the effort to hold the Gay Games for the first time in Asia even though D.C. had a stronger bid for carrying out the event.

“Everything she’s done for the community has been very visible and from the heart,” he said of Muriel Bowser. “And in my personal relationship with her, she has also been nothing but absolutely supportive of me and my partner over the years,” he said.

“And we were just at her house helping her put up Christmas decorations,” he added. “And so, it’s been wonderful having her as a sister.”

Veteran D.C. LGBTQ advocate Japer Bowles, who serves as the current director of the Mayor’s Office of LGBTQ Affairs, discussed the mayor’s record on LGBTQ issues in his own statement to the Blade. 

“Mayor Muriel Bowser has been an unwavering champion for D.C.’s lesbian, gay, bisexual, transgender, queer, intersex, and asexual community and movement,” he said. “Her more than 20 years of leadership brought consistent and historic investments for our LGBTQIA+ youth, seniors, veterans, and residents experiencing homelessness as well as impactful violence-prevention initiatives,” he added.

 “Under her leadership, the Mayor’s Office of LGBTQ Affairs grew into a national leader, delivering more than $10 million in community grants for LGBTQIA+ programs and managing 110 Housing Choice vouchers,” Bowles said in his statement.

“Because of her work, we are stronger, safer, more visible, and, proudly, ‘the gayest city in the world,’” he said in quoting Bowser’s often stated comment at LGBTQ events about D.C. being the world’s gayest city.  

In a statement that might surprise some in the LGBTQ community, gay D.C. small business owner Salah Czapary, who served from 2022 to 2024 as director of the Mayor’s Office of Nightlife and Culture as a Bowser appointee, criticized some of the city’s non-LGBTQ related polices under the Bowser administration as being harmful to small businesses.

Bowser appointed Czapary, a former D.C. police officer, to the nightlife office position shortly after he lost his race as an openly gay candidate for the Ward 1 D.C. Council seat held by incumbent Brianne Nadeau.

“Mayor Bowser led D.C. through turbulent years and major growth, and we can all be proud of her leadership on many fronts,”  Czapary said in a statement to the Blade. “She is also setting an example that more leaders should follow by stepping aside to allow a new generation to lead,” he said. “But as we turn the page, we must be honest about what the next mayor should deliver,” he says in his statement.

Without mentioning Bowser by name, he went on to list at least four things the next mayor should do that implied that Bowser did not do or did wrong. Among them were treating the D.C. Council as a “true governing partner,” not letting residents and small businesses “feel the weight of outdated, slow, and unresponsive systems,” and the need for leadership that “values competence over loyalty.”

He added that a “reversal” by the city of the city’s streetery program that was put in place during the COVID pandemic to allow restaurants to install outdoor seating into street parking lanes, was a “roll it back” on progress for small businesses.

He concluded by stating, “LGBTQ rights and inclusion are among the many fronts on which we can be very proud of the mayor’s leadership.” 

The mayor’s office did not immediately respond to an offer by the Blade to give the office an opportunity to respond to Czapary’s statement.  

A significantly different perspective was given by Sheila Alexander Reid, who said she was proud to serve as director of the Mayor’s LGBTQ Affairs Office during the first six-and-a-half years of Bowser’s tenure as mayor.

“I watched her evolve from a newly elected mayor finding her footing into a confident, seasoned leader who met every challenge head-on and time after time slayed the competition,” Alexander Reid said in a statement to the Blade.

Sheila Alexander-Reid and Mayor Muriel Bowser attend the opening of the DC Center for the LGBT Community inside the Franklin D. Reeves Municipal Center on April 21, 2015. (Washington Blade file photo by Michael Key)

“With each year in office, her voice grew stronger, more grounded, and more fearless,” her statement continues. “And she needed that strength, because being a Black woman mayor is not for the faint of heart, But Mayor Bowser never backed down. Instead, she showed the city what courageous, compassionate leadership truly looks like.”

Alexander Reid added that Bowser funded a new LGBTQ Community Center facility, expanded a workforce development program for the transgender community, and “made D.C. the first jurisdiction in the nation to require LGBTQ+ cultural competency training for healthcare providers.” 

She also pointed to the mayor’s LGBTQ “safety nets” through low-barrier shelters and housing vouchers and her support for LGBTQ celebrations like the 17th Street High Heel Race.

“But what inspired me most was this,” Alexander Reid stated. “At a time when some elected officials across the country were retreating from LGBTQ support, Mayor Bowser was doing the opposite. She leaned in, she doubled down. She made sure LGBTQ residents knew they were seen, valued, protected, and loved by their city.”

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