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.
District of Columbia
Bowser appoints first nonbinary person to Cabinet-level position
Peter Stephan named Office of Disability Rights interim director
D.C. Mayor Muriel Bower has named longtime disability rights advocate Peter L. Stephan, who identifies as nonbinary, as interim director of the D.C. Office of Disability Rights.
The local transgender and nonbinary advocacy group Our Trans Capital and the LGBTQ group Capital Stonewall Democrats issued a joint statement calling Stephan’s appointment an historic development as the first-ever appointment of a nonbinary person to a Cabinet-level D.C. government position.
“This milestone appointment recognizes Stephan’s extensive expertise in disability rights advocacy and marks a historic advancement for transgender and nonbinary representation in District government leadership,” the statement says.
The statement notes that Stephan, an attorney, held the position of general counsel at the Office of Disability Rights immediately prior to the mayor’s decision to name him interim director.
The mayor’s office didn’t immediately respond to a question from the Washington Blade asking if Bowser plans to name Stephan as the permanent director of the Office of Disability Rights. John Fanning, a spokesperson for D.C. Council member Anita Bonds (D-At-Large), said the office’s director position requires confirmation by the Council.
Stephan couldn’t immediately be reached for comment.
“At a time when trans and nonbinary people ae under attack across the country, D.C. continues to lead by example,” said Stevie McCarty, president of Capital Stonewall Democrats. “This appointment reflects what we have always believed that our community is always strongest when every voice is represented in government,” he said.
“This is a historic step forward,” said Vida Rengel, founder of Our Trans Capital. “Interim Director Stephan’s career and accomplishments are a shining example of the positive impact that trans and nonbinary public servants can have on our communities,” according to Rangel.
District of Columbia
Capital Stonewall Democrats set to celebrate 50th anniversary
Mayor Bowser expected to attend March 20 event
D.C. Mayor Muriel Bowser, members of the D.C. Council, and local and national Democratic Party officials are expected to join more than 150 LGBTQ advocates and supporters on March 20 for the 50th anniversary celebration of the city’s Capital Stonewall Democrats.
A statement released by the organization says the event is scheduled to be held at the Pepco Edison Place Gallery building at 702 8th St., N.W. in D.C.
“The evening will honor the people who built Capital Stonewall Democrats across five decades – activists who fought for rights when the odds were against them, public servants who opened doors and refused to let them close, and a new generation of leaders ready to carry the work forward,” the statement says.
Founded in 1976 as the Gertrude Stein Democratic Club, the organization’s members voted in 2021 to change its name to the Capital Stonewall Democrats.
Among those planning to attend the anniversary event is longtime D.C. gay Democratic activist Paul Kuntzler, 84, who is one of the two co-founders of the then-Gertrude Stein Democratic Club. Kuntzler told the Washington Blade that he and co-founder Richard Maulsby were joined by about a dozen others in the living room of his Southwest D.C. home at the group’s founding meeting in January 1976.
He said that among the reasons for forming a local LGBTQ Democratic group at the time was to arrange for a then “gay” presence at the 1976 Democratic National Convention, at which Jimmy Carter won the Democratic nomination for U.S. president and later won election as president.
Maulsby, who served as the Stein Club president for its first three years and who now lives in Sarasota, Fla., said he would not be attending the March 20 anniversary event, but he fully supports the organization’s continuing work as an LGBTQ organization associated with the Democratic Party.
Steven McCarty, Capital Stonewall Democrats’ current president, said in the statement that the anniversary celebration will highlight the organization’s work since the time of its founding.
“Capital Stonewall Democrats has been fighting for LGBTQ+ political power in this city for 50 years, electing people, training organizers, holding this community together through some really hard moments,” he said. “And right now, with everything going on, that work has never mattered more. This gala is the first moment of our next chapter, and I want the community to be a part of it.”
The statement says among the special guests attending the event will be Democratic National Committee Vice Chair Malcolm Kenyatta, who became the first openly gay LGBTQ person of color to win election to the Pennsylvania General Assembly in 2018.
Other guests of honor, according to the statement, include Mayor Bowser; D.C. Council member Zachary Parker (D-Ward 5, the Council’s only gay member; D.C. Council member Anita Bonds (D-At-Large); Earl Fowlkes, founder of the International Federation of Black Prides; Vita Rangel, a transgender woman who serves as Deputy Director of the D.C. Mayor’s Office of Talent and Appointments; Heidi Ellis, director of the D.C. LGBTQ Budget Coalition; Rayceen Pendarvis, longtime D.C. LGBTQ civic activist; and Phillip Pannell, longtime D.C. LGBTQ Democratic activist and Ward 8 civic activist.
Information about ticket availability for the Capital Stonewall Democrats anniversary gala can be accessed here: capitalstonewalldemocrats.com/50th
Maryland
Md. Legislative LGBTQ+ Caucus outlines 2026 priorities
Expanded PrEP access among objectives
Maryland’s Legislative LGBTQ+ Caucus outlined legislative priorities for the remainder of the General Assembly’s 2026 term during a press conference on March 5.
State Del. Kris Fair (D-Fredrick County) led the press conference. State Del. Ashanti Martinez (D-Prince George’s County) and other caucus members also spoke.
Caucus members are sponsoring 12 bills and supporting four others.
Martinez is sponsoring House Bill 1114, which would expand PrEP access in Maryland.
“PrEP is 99 percent effective in preventing HIV transmission,” he explained, noting PrEP’s cost often turns away potential users.
The bill aims to extend insurance coverage and expand pharmacists’ ability to prescribe PrEP along with other HIV treatments and testing. Martinez is working with state Sen. Clarence Lam (D-Anne Arundel and Howard Counties) and FreeState Justice on the bill.
The House Health Committee had a hearing last week that included HB1114.
“Ending the HIV epidemic is about expanding access and providing these life-saving tools to all persons in Maryland,” Martinez said.
Several other pieces of legislation were highlighted during the press conferences. They included measures focused on youth and education, birth certificate markers, so-called conversion therapy, and hormone medications.
State Sen. Cheryl Kagan (D-Montgomery County) is cosponsoring Senate Bill 950, which would update and strengthen conversion therapy laws. State Del. Bonnie Cullison (D-Montgomery County) has introduced an identical bill that would extend the statute of limitations on individuals who facilitate conversion therapy.
Kagan explained the bill would allow conversion therapy victims to come to terms with their experience undergoing the widely discredited practice that “creates shame and it silences survivors.”
When questioned, Fair explained the press conference happened late into the legislative session because “we [the caucus] are constantly having to respond in real time to what’s happening in Washington” while drafting and considering pieces of legislation.
The Frederick County Democrat described this session’s bills as the “most ambitious list of priorities to date.” Fair also described the caucus’s goals.
“It’s decency, it’s dignity, and its humanity,” he said.
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