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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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District of Columbia

High cost of living shuts essential workers out, threatens D.C.’s economic stability

City residents don’t always reflect those who keep it running

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Many of the waiters and other service industry workers who keep D.C. running cannot afford to live here. (Photo by Krakenimages.com/Bigstock)

When Nic Kelly finishes her 6 a.m. shift as a manager at PetSmart, she walks to her bartending job at Alamo Drafthouse in Crystal City to serve cocktails, beers, and milkshakes for hundreds of guests.

Kelly, 26, doesn’t work a combined 60-65 hours per week to pocket extra cash –– she does it to barely make her almost $1,700 rent each month.

“I’m constantly working, and some days I work two jobs in the same day,” Kelly said. “But twice now I’ve had to borrow money from my mother just to make sure I pay my full rent.”

Yesim Sayin, D.C. Policy Center executive director, said this is unfortunately how the D.C. area is structured –– to keep essential workers, service employees, and lower-income people out and those with greater economic mobility in.

The DMV area’s high cost of living makes it near-impossible for employees who keep the area running to make a living, Sayin said. In 2022, only 36% of D.C.’s essential workers lived in the city, according to a D.C. Policy Center report. D.C. is also ranked 13th in the world for highest cost of living as of Nov. 7.

But for Sayin, there’s more work for policymakers to get done than simply acknowledging the high cost of living. Take a look at how current policies are impacting residents, and what long-term solutions could help the DMV thrive.

Feeling the high cost of living 

D.C. has the highest unemployment rate in the country at 6.0% as of August. Sayin said the city’s high unemployment rate reflects a lack of geographic mobility in its population, meaning those who can’t find jobs can’t afford to look outside of the DMV area.

Though there are job training groups working to close the unemployment  gap, securing a job –– let alone two –– rarely guarantees a comfortable lifestyle for essential and service employees.

A single-person household in D.C. with no children must make at least $25.98 an hour to support themselves, according to the Living Wage Calculator. That number jumps to $51.68 an hour for a single adult with one child. Minimum wage in D.C. is $17.95 an hour and $10 an hour for tipped employees.

Whether it’s utilizing free meals at the Alamo to save on groceries or borrowing money to make rent, every week could bring a different sacrifice for Kelly. 

While Kelly lives and works a few minutes south of D.C., Sayin said the connectedness of the DMV means you don’t have to travel far to feel the withering effects of the area’s high cost of living.

“People don’t really care what flag adorns their skies,” Sayin said. “They’re looking for good housing, good schools, cheaper cost of living, and ease of transportation.”

For those that stay in the DMV area, those conditions are hard to come by. This can lead to people working multiple jobs or turning to gigs, such as Uber driving or selling on Etsy, to fill income gaps. Sayin said there are short-term benefits to securing these gigs alongside a primary job, such as helping people weather economic storms, avoid going on government assistance or racking up debt.

But she said the long-term implications of relying on gigs or other jobs can harm someone’s professional aspirations.

“You can spend three extra hours on your own profession every work week, or you can spend three hours driving Uber. One gives you cash, but the other gives you perhaps a different path in your professional life,” Sayin said. “And then 20 years from now, you could be making much more with those additional investments in yourself professionally.” 

There’s a strong demand for work in D.C., but when the city starts suffering economically, those who live outside the area –– usually essential or remote workers –– will likely find work elsewhere. Sayin said this negatively impacts those employees’ quality of life, giving them less professional tenure and stability.

D.C.’s cost of living also centralizes power in the city, according to Sayin. When lower-wage employees are priced out, the residents who make up the city don’t always reflect the ones who keep it running. 

“Ask your Amazon, Uber or FedEx driver where they live. They’re somewhere in Waldorf. They’re not here,” Sayin said.

Working toward an accessible D.C.

Build more. That’s what Sayin said when thinking of ways to solve D.C.’s affordability crisis.

But it’s not just about building more –– it’s about building smartly and utilizing the space of the city more strategically, Sayin said.

While D.C. has constructed lots of new housing over the years, Sayin noted that they were mostly built in a handful of neighborhoods tailored to middle and upper-class people such as The Wharf. Similarly, building trendy small units to house young professionals moving to the city take up prime real estate from struggling families that have much less geographic mobility, she said.

“The affordability problem is that today’s stock is yesterday’s construction,” Sayin said.

Solving these issues includes ushering in a modern perspective on outdated policies. Sayin cited a D.C. policy that places restrictions on childcare centers built on second floors. Since D.C. parents pay the highest rates in the country for childcare at $47,174 annually, she said loosening unnecessary restrictions could help fuel supply and lower costs for families.

Sayin said policymakers need to consider the economic challenges facing residents today, and whether the incentives and tradeoffs of living in D.C. are valuable enough to keep them in the city.

For Kelly, the incentives and tradeoffs of staying in the DMV area aren’t enough. She’s considered moving back in with her mom a few times given how much she has to work just to get by.

Aside from wanting higher compensation for the work she does –– she noted that businesses can’t operate without employees like her –– Kelly also questioned the value of the tradeoff of moving so close to the city.

“There’s no reason why I’m paying $1,700 for a little studio,” Kelly said. “You also have to pay for parking, utilities aren’t included and a lot of residents have to pay for amenities. We are just giving these property management companies so much money, and we’re not really seeing a whole lot of benefit from it.”

Sayin said placing value on the working people of the city will inject fresh life into D.C.’s economy. Without a valuable tradeoff for living in or around the city, there’s little keeping essential and service employees from staying and doing work taken for granted by policymakers. 

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District of Columbia

Activist hosts Diwali celebration in D.C.

More than 120 people attended Joshua Patel’s party on Nov. 9.

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Joshua Patel hosted a Diwali celebration at the Speakeasy at Capo Deli on Florida Avenue, N.W., on Nov. 9, 2025. (Photo courtesy of Josh Patel)

LGBTQ activist and businessman Joshua Patel hosted a community Diwali party on Nov. 9.

Patel organized the event as a community gathering amid the Trump-Vance administration’s policies against LGBTQ inclusion and DEI. The event, held at the Capo Deli speakeasy, drew more than 120 attendees, including local business leaders.

Patel is a franchise owner of ProMD Health, recently awarded as the best med spa by the Washington Blade. He is also a major gift officer at Lambda Legal.

Patel noted that upon moving from New York to Washington in 2022, he desired a chance for community-based Diwali celebrations. He stated that the city offered minimal chances for gatherings beyond religious institutions, unless one was invited to the White House’s Diwali party. 

“With our current administration, that gathering too has ended — where we cannot expect more than Kash Patel and President Trump lighting a ‘diya’ candle on Instagram while simultaneously cutting DEIB funding,” Patel said.

In addition to celebrating the festival of lights and good over evil, Patel saw the event as a moment to showcase “rich, vibrant culture” and “express gratitude.”

Patel coined the celebration a “unifier.”

“From a spiritual angle, Shiva was the world’s first transgender God, taking the form of both “male” and “female” incarnations,” Patel said. “The symbolism of our faith and concepts are universal and allows for all to rejoice in the festivities as much or little as they desire.”

Savor Soiree, DMV Mini Snacks and Capo Deli catered the event. DJ Kush spun music and Elisaz Events decorated the Diwali celebration.

The Diwali party also featured performances by former Miss Maryland Heather Young Schleicher, actor Hariqbal Basi, Patel himself and Salatin Tavakoly and Haseeb Ahsan.

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Maryland

Harford school board appeals state’s book ban decision to circuit court

5-2 ruling in response to ‘Flamer’ directive

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The book “Flamer” is by Mike Curato, who wrote about his experience being bullied as a kid for being gay. (Photo by Kristen Griffith for the Baltimore Banner)

By KRISTEN GRIFFITH | Marking a historic moment in Maryland’s debate over school library censorship, Harford County’s school board voted Thursday to appeal the state’s unprecedented decision overturning its ban of a young adult graphic novel, pushing the dispute into circuit court.

The 5-2 vote followed a recent ruling from the state board overturning Harford’s ban of the book “Flamer.” In a special meeting Thursday afternoon, board members weighed whether to seek reconsideration or take the matter to circuit court — ultimately opting to appeal.

The book “Flamer” is by Mike Curato, who wrote about his experience being bullied as a kid for being gay.

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

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