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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

How Pepper the courthouse dog helps victims of abuse

Reshaping how the legal system balances compassion with procedure

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Abby Stavitsky and Pepper (Courtesy photo)

Deborah Kelly’s blind husband, Alton, was dragged for blocks to his death by a hit-and-run driver who had already plowed into her on Alabama Ave., S.E., in June 2024. 

But her trauma had only just begun. It took 10 months before the driver, Kenneth Trice, Jr., was arrested, and another six months before he was sentenced to just six months behind bars.  

As she heaved and sobbed in the courtroom in November, Kelly had a steady four-legged presence by her side: Pepper the Courthouse Dog, as the black Labrador retriever is known in D.C. Superior Court.

Abby Stavitsky, a former federal prosecutor who now serves as a victims’ advocate, is the owner and handler of nine-year-old Pepper. She says that one of the things that has made Pepper such a great asset in the court in the past six years is the emotional support and comfort she provides to victims.  

“She absorbs all of the feelings and the emotions around her, but she’s very good at handling it,” Stavitsky said. 

Pepper and Stavitsky started working in Magistrate Judge Mary Grace Rook’s courtroom — and now works in Magistrate Judge Janet Albert’s — to provide support for youth who suffer trauma, especially young survivors of commercial sexual exploitation.

These specially trained dogs offer emotional support to trauma victims of all ages. Courthouse dogs can reduce victims’ and witnesses’ anxiety and stress, making it easier for them to provide clear statements in the courtroom, according to a 2019 report in the Criminal Justice Review. 

“Having something to pet and interact with is a distraction that results in victims being calmer when testifying in court,” says Stavitsky. “This gives them an extra level of comfort.” 

What brought Stavitsky and Pepper together

Stavitsky, who spent 25 years as an assistant U.S attorney, handled a lot of victim-based crimes, mostly domestic violence and sex offenses. She was also a dog lover, and once she learned about courthouse dogs and their use, she was inspired.

In 2019, Pepper was given to Stavitsky by a Massachusetts-based organization, NEADS, formerly known as the National Education for Assistance Dog Services. Although Pepper was originally trained to be a service dog, evaluators determined her character was best suited for a courthouse dog.

Pepper now works regularly in various treatment court cases involving juveniles, many of whom have experienced trauma or are involved in the child welfare system. She also sits with victims while they are testifying in a trial.

“She loves people, especially children,” Stavitsky said. “She loves that interaction.”

Courthouse dogs have a long history 

In courthouses across the U.S. specially trained “facility dogs” are becoming an important part of how the justice system supports vulnerable victims and witnesses.

Since the late 1980s, these dogs were used to help trauma survivors and anxious children during testimonies and interviews. The first dog to make an appearance in a courtroom was Sheba, a German shepherd who assisted child sexual abuse victims in the Queens (N.Y.) District Attorney’s Office. Courthouse dogs help them communicate more clearly, especially in these settings that make them anxious and stressed.

Unlike service dogs, courthouse facility dogs are professionally trained through accredited assistance dog organizations and work daily alongside prosecutors, victim advocates, and forensic interviewers. For example, courthouse dogs can have more social interaction, unlike service dogs.

Courthouse dogs’ growing use has prompted state laws and professional guidelines to recognize the dogs as a trauma-informed tool that helps victims participate in the justice process without compromising courtroom fairness.

As more jurisdictions adopt these programs, courthouse dogs are reshaping how the legal system balances compassion with procedure, ensuring that victims’ voices can be heard in environments that might otherwise silence them.

Pepper makes it easy to see why. 

“I really love people, especially kids, and can provide emotional support and comfort during all stages of the court process,” reads the business card Stavitsky hands out with Pepper’s picture. “I’m calm, quiet and can stay in place for several hours.” 

(This article was written by a student in the journalism program at Bard High School Early College DC. This work is part of a partnership between the Washington Blade Foundation and Youthcast Media Group, funded through the FY26 Community Development Grant from the Office of D.C. Mayor Muriel Bowser.)

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Rehoboth Beach

Women’s FEST returns to Rehoboth Beach next week

Golf tournament, mini-concerts, meetups planned for silver anniversary festival

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(Washington Blade file photo by Daniel Truitt)

Women’s+ FEST 2026 will begin on Thursday, April 9 at CAMP Rehoboth Community Center.

The festival will celebrate a remarkable milestone in 2026: its silver anniversary. For 25 years, Women’s+ FEST has brought fun and entertainment for all those on the spectrum of the feminine spirit. There will be a variety of events including a golf tournament, mini-concerts and happy hour meetups.

For more information, visit Camp Rehoboth’s website.

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District of Columbia

How new barriers to health care coverage are hitting D.C.

Federally qualified health centers bracing for influx of newly uninsured patients

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Erin Loubier, vice president for access and strategic initiatives at Whitman-Walker Health. (Courtesy photo)

Washington, D.C. has the second-lowest rate of people who lack health insurance in the country, but many residents are facing new barriers to health care due to provisions of the sweeping federal law passed in July, which threatens access for thousands. 

Changes to insurance eligibility and the rising cost of premiums, which kicked in for some in October and others more recently, are expected to leave many more patients uninsured or unable to afford medical care. Federally qualified health centers, including D.C.’s Whitman-Walker Health, where 10 to 12 percent of patients are uninsured, are bracing for an influx of newly uninsured patients while facing their own financial challenges. 

Even in D.C., where uninsured rates have been among the lowest in the country, changes brought on by the passage of the Republican mega bill (known as the “Big Beautiful Bill”) will have major effects. 

The changes from the bill affect Medicaid, which is free to low-income patients, and subsidies for insurance that people buy on the health insurance exchanges that were started under the Affordable Care Act, which were allowed to expire on Dec. 31. 

Erin Loubier, vice president for access and strategic initiatives at Whitman-Walker Health, says some Whitman-Walker Health patients have received notices about premium increases, including several who say the increases are up to 1,000 percent more than they were paying. 

“That is like paying rent,” she says. “We live in an expensive city, so any increases are going to be really, really hard on people.”

Whitman-Walker Health and other healthcare providers are expecting the changes to have multiple effects — some patients may not be able to afford coverage or may avoid going to the doctor and allow health conditions to worsen because they can’t afford care, and many more will be seeking care who don’t have insurance. 

“I’m worried that we’re going to not just have people who can’t get care, but that they delay care until they’re really sick, and then the care is not as effective because they might have waited too long, and then we may have a less healthy population,” Loubier says.

Loubier says delaying care, and serving more people without insurance has major implications for Whitman-Walker Health and other health centers serving the community.

“There’s going to be a lot of pressure on us to try to find and raise more money, and that’s going to be harder, because I think all organizations who provide health care are going to be facing this,” she says. 

The U.S. health care system is the most expensive in the world, and has much higher out-of-pocket costs for individuals. But in other countries like the United Kingdom, Australia, Canada, and many others, health care is much less expensive — or even free.

Even though the U.S. has a high-priced healthcare system, critics say there are still ways to bring down costs by forcing insurance and pharmaceutical companies to absorb more of the costs, rather than transferring the costs to patients.

“In the U.S., they end up trying to cut costs at the person’s level, not at the level of the different corporations or structures that are making a lot of money in healthcare,” said Loubier. “Our system is so complicated and there is probably waste in it, but I don’t think that that cost and waste is at the ‘people’ level. I think it’s higher up at the system level, but that is much, much harder to get people to try to make cuts at that end.”

Ultimately at Whitman-Walker Health, healthcare providers and insurance navigators are planning to help with everyday necessities when it comes to healthcare coverage and striving to provide healthcare in partnership with patients, said Loubier.

“The key here is we’re going to have a lot of people who may lose insurance, and they’re going to rely on places like Whitman-Walker Health and other community health centers, so we have to figure out how we keep providing that care,” she said. 

(This article was written by a student in the journalism program at Bard High School Early College DC. This work is part of a partnership between the Washington Blade Foundation and Youthcast Media Group, funded through the FY26 Community Development Grant from the Office of D.C. Mayor Muriel Bowser.)

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