Local
Trans group struggles with financial crisis
T.H.E. hit by IRS tax liens, possible suspension of city funds
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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Congratulations to R. Warren Gill III, M.Div., M.A. on being appointed as the development manager at HIPS. Upon his appointment, Gill said, “For as long as I’ve lived in Washington, D.C., I’ve followed and admired the life-saving work HIPS does in our communities. I’m proud to join the staff and help strengthen the financial support that sustains this work.”
Gill will lead fundraising strategy, donor engagement, and institutional partnerships. HIPS promotes the health, rights, and dignity of individuals and communities impacted by sexual exchange and/or drug use due to choice, coercion, or circumstance. HIPS provides compassionate harm reduction services, advocacy, and community engagement that is respectful, non-judgmental, and affirms and honors individual power and agency.
Gill has built a career at the intersection of progressive politics, advocacy, and nonprofit leadership. Previously he served as director of communications at AIDS United, supporting national efforts to end the HIV epidemic. Prior to that he had roles including; being press secretary for Sen. Bernie Sanders during the 2016 presidential primary, and working with the General Board of Church and Society, the United Methodist Church, the denomination’s social justice and advocacy arm.
Gill earned his bachelor’s degree in philosophy and religious studies, Jewish Studies, Stockton University; his master’s degree in political communication from American University, where his graduate research focused on values-based messaging and cognitive linguistics; and his master of Divinity degree from the Pacific School of Religion.
District of Columbia
Judge denies D.C. request to dismiss gay police captain’s anti-bias lawsuit
MPD accused of illegally demoting officer for taking family leave to care for newborn child
A U.S. District Court judge on Jan. 21 denied a request by attorneys representing the D.C. Metropolitan Police Department to dismiss a lawsuit filed by a gay captain accusing police officials of illegally demoting him for taking parental leave to join his husband in caring for their newborn son.
The lawsuit filed by Capt. Paul Hrebenak charges that police officials violated the U.S. Family and Medical Leave Act, a similar D.C. family leave law, and the Constitution’s Equal Protection Clause by refusing to allow him to return to his position as director of the department’s School Safety Division upon his return from parental leave.
It says police officials transferred Hrebenak to another police division against his wishes, which was a far less desirable job and was the equivalent of a demotion, even though it had the same pay grade as his earlier job.
In response to a motion filed by attorneys with the Office of the D.C. Attorney General, which represents and defends D.C. government agencies against lawsuits, Judge Randolph D. Moss agreed to dismiss seven of the lawsuit’s 14 counts or claims but left in place six counts.
Scott Lempert, the attorney representing Hrebenak, said he and Hrebenak agreed to drop one of the 14 counts prior to the Jan. 21 court hearing.
“He did not dismiss the essential claims in this case,” Lempert told the Washington Blade. “So, we won is the short answer. We defeated the motion to dismiss the case.”
Gabriel Shoglow, a spokesperson for the Office of the D.C. Attorney General, said the office has a policy of not commenting on pending litigation and it would not comment on the judge’s ruling upholding six of the lawsuit’s initial 14 counts.
In issuing his ruling from the bench, Moss gave Lempert the option of filing an amended complaint by March 6 to seek the reinstatement of the counts he dismissed. He gave attorneys for the D.C. attorney general’s office a deadline of March 20 to file a response to an amended complaint.
Lempert told the Blade he and Hrebenak have yet to decide whether to file an amended complaint or whether to ask the judge to move the case ahead to a jury trial, which they initially requested.
In its 26-page motion calling for dismissal of the case, filed on May 30, 2025, D.C. Office of the Attorney General attorneys argue that the police department has legal authority to transfer its officers, including captains, to a different job. It says that Hrebenak’s transfer to a position of watch commander at the department’s First District was fully equivalent in status to his job as director of the School Safety Division.
“The Watch Commander position is not alleged to have changed plaintiff’s rank of captain or his benefits or pay, and thus plaintiff has not plausibly alleged that he was put in a non-equivalent position,” the motion to dismiss states.
“Thus, his reassignment is not a demotion,” it says. “And the fact that his shift changed does not mean that the position is not equivalent to his prior position. The law does not require that every single aspect of the positions be the same.”
Hrebenak’s lawsuit states that “straight” police officers have routinely taken similar family and parental leave to care for a newborn child and have not been transferred to a different job. According to the lawsuit, the School Safety Division assignment allowed him to work a day shift, a needed shift for his recognized disability of Crohn’s Disease, which the lawsuit says is exacerbated by working late hours at night.
The lawsuit points out that Hrebenak disclosed he had Crohn’s Disease at the time he applied for his police job, and it was determined he could carry out his duties as an officer despite this ailment, which was listed as a disability.
Among other things, the lawsuit notes that Hrebenak had a designated reserved parking space for his earlier job and lost the parking space for the job to which he was transferred.
“Plaintiff’s removal as director at MPD’s School Safety Division was a targeted, premeditated punishment for his taking statutorily protected leave as a gay man,” the lawsuit states. “There was no operational need by MPD to remove plaintiff as director of MPD’s School Safety Division, a position in which plaintiff very successfully served for years,” it says.
In another action to strengthen Hrebenak’s opposition to the city’s motion to dismiss the case, Lempert filed with the court on Jan. 15 a “Notice of Supplemental Authority” that included two controversial reports that Lempert said showed that former D.C. Police Chief Pamela Smith put in place a policy of involuntary police transfers “to effectively demote and end careers of personnel who had displeased Chief Smith and or others in MPD leadership.”
One of the reports was prepared by the Republican members of the House Oversight and Government Reform Committee and the other was prepared by the office of Jeanine Pirro, the U.S. attorney for D.C. appointed by President Donald Trump.
Both reports allege that Smith, who resigned from her position as chief effective Dec. 31, pressured police officials to change crime reporting data to make it appear that the number of violent crimes was significantly lower than it actually was by threatening to transfer them to undesirable positions in the department. Smith has denied those claims.
“These findings support plaintiff’s arguments that it was the policy or custom of MPD to inflect involuntary transfers on MPD personnel as retaliation for doing or saying something in which leadership disapproved,” Lempert says in his court filing submitting the two reports.
“As shown, many officers suffered under this pervasive custom, including Capt. Hrebenak,” he stated. “Accordingly, by definition, transferred positions were not equivalent to officers’ previous positions,” he added.
Virginia
LGBTQ rights at forefront of 2026 legislative session in Va.
Repeal of state’s marriage amendment a top priority
With 2026 ramping up, LGBTQ rights are at the forefront of Virginia politics.
The repeal of Virginia’s constitutional amendment that defines marriage as between a man and a woman is a top legislative priority for activists and advocacy groups.
The Virginia Senate on Jan. 17 by a 26-13 vote margin approved outgoing state Sen. Adam Ebbin (D-Alexandria)’s resolution that would repeal the Marshall-Newman Amendment. The Virginia House of Delegates earlier this month passed it.
Two successive legislatures must approve the resolution before it can go to the ballot.
The resolution passed in 2025. Voters are expected to consider repealing the amendment on Nov. 3.
The Virginia General Assembly opened with an introduction of a two-year budget — Virginia’s budget runs biannually.
In 2024 some funding was allocated to LGBTQ causes, and others were passed over. This year’s proposed budget leaves room for funding for a host of LGBTQ opportunities. One specific priority that Equality Virginia is promoting would ensure the state budget expands healthcare for LGBTQ individuals and extending gender affirming care.
Equality Virginia Communications Director Reed Williams told the Washington Blade the organization is also focused on passing three main budget amendments, and ensuring “LGBTQ+ students and their teachers have resources to navigate and address mental health challenges in K-12 schools.”
Along with ensuring school training, the organization wants funding in hopes of “establishing enhanced competency training for Virginia’s 988 Lifeline counselors and support staff to provide affirming care for LGBTQ+ youth.” This comes after the Trump-Vance administration shut down the specific hotline for LGBTQ young people that callers could previously reach if they called 988.
On a federal level, protections and health care access for LGBTQ people has taken a hit, as the Trump-Vance administration has continued to issue executive orders affecting the health care system. LGBTQ people no longer have federal legal health care protections, so local and state politics has become even more important for LGBTQ rights groups.
Equality Virginia has urged its supporters to call their local senators and stress the importance of voting to expand health care protections for LGBTQ people. The organization also plans to hold information sessions and a lobby day on Feb. 2.
Equality Virginia is tracking bills on its website.
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