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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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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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Capital Pride reveals 2026 theme

‘Exist, Resist, Have the Audacity’

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Capital Pride Alliance CEO and President Ryan Bos speaks at the Pride Reveal event at The Schulyer at The Hamilton on Thursday, Feb. 26. (Washington Blade photo by Michael Key)

In an official statement released at the reveal event Capital Pride Alliance described its just announced 2026 Pride theme of “Exist, Resist, Have the Audacity” as a “bold declaration affirming the presence, resilience, and courage of LGBTQ+ people around the world.”

The statement adds, “Grounded in the undeniable truth that our existence is not up for debate, this year’s theme calls on the community to live loudly and proudly, stand firm against injustice and erasure, and embody the collective strength that has always defined the LGBTQ+ community.”

In a reference to the impact of the hostile political climate, the statement says, “In a time when LGBTQ+ rights and history continue to face challenges, especially in our Nation’s Capital, where policy and public discourse shape the future of our country, together, we must ensure that our voices are visible, heard, and unapologetically centered.”

The statement also quotes Capital Pride Alliance CEO and President Ryan Bos’s message at the Reveal event: “This year’s theme is both a declaration and a demand,” Bos said. “Exist, Resist, Have Audacity! reflects the resilience of our community and our responsibility to protect the progress we’ve made. As we look toward our nation’s 250th anniversary, we affirm that LGBTQ+ people have always been and always will be part of the United States’s history, and we will continue shaping its future with strength and resolve,” he concluded.     

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Capital Pride board member resigns, alleges failure to address ‘sexual misconduct’

In startling letter, Taylor Chandler says board’s inaction protected ‘sexual predator’

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Taylor Lianne Chandler resigned from the Capital Pride board this week. (Washington Blade file photo by Michael Key)

Taylor Lianne Chandler, a member of the Capital Pride Alliance Board of Directors since 2019 who most recently served as the board’s secretary, submitted a letter of resignation on Feb. 24 that alleges the board has failed to address instances of “sexual misconduct” within the Capital Pride organization.

The Washington Blade received a copy of Chandler’s resignation letter one day after she submitted it from an anonymous source. Chandler, who identifies as transgender and intersex, said in an interview that she did not send the letter to the Blade, but she suspected someone associated with Capital Pride, which organizes D.C.’s annual LGBTQ Pride events, “wants it out in the open.”

“It is with a heavy heart, but with absolute clarity, that I submit my resignation from the Capital Pride Alliance Board of Directors effective immediately,” Chandler states in her letter.  “I have devoted nearly ten years of my life to this organization,” she wrote, pointing to her initial involvement as a volunteer and later as a producer of events as chair of the organization’s Transgender, Gender Non-Conforming, and Intersex Committee.

“Capital Pride once meant something profound to me – a space of safety, visibility, and community for people who have often been denied all three,” her letter continues. “That is no longer the organization I am part of today.” 

“I, along with other board members, brought forward credible concerns regarding sexual misconduct – a pattern of behavior spanning years – to the attention of this board,” Chandler states in the letter. “What followed was not accountability. What followed was retaliation. Rather than addressing the substance of what was reported, officers and fellow board members chose to chastise those of us who came forward.”

The letter adds, “This board has made its priorities clear through its actions: protecting a sexual predator matters more than protecting the people who had the courage to come forward. … I have been targeted, bullied, and made to feel like an outsider for doing what any person of integrity would do – telling the truth.”

In response to a request from the Blade for comment, Anna Jinkerson, who serves as chair of the Capital Pride board, sent the Blade a statement praising Taylor Chandler’s efforts as a Capital Pride volunteer and board member but did not specifically address the issue of alleged sexual misconduct.

“We’re also aware that her resignation letter has been shared with the media and has listed concerns,” Jinkerson said in her statement. “When concerns are brought to CPA, we act quickly and appropriately to address them,” she said.

“As we continue to grow our organization, we’re proactively strengthening the policies and procedures that shape our systems, our infrastructure, and the support we provide to our team and partners,” Jinkerson said in her statement. “We’re doing this because the community’s experience with CPA must always be safe, affirming, empowering, and inclusive,” she added.  

In an interview with the Blade, Chandler said she was not the target of the alleged sexual harassment.

She said a Capital Pride investigation identified one individual implicated in a “pattern” of sexual harassment related behavior over a period of time. But she said she was bound by a  Non-Disclosure Agreement (NDA) that applies to all board members and she cannot disclose the name of the person implicated in alleged sexual misconduct or those who came forward to complain about it.  

“It was one individual, but there was a pattern and a history,” Chandler said, noting that was the extent of what she can disclose.

“And I’ll say this,” she added. “In my opinion, with gay culture sometimes the touchy feely-ness that goes on seems to be like just part of the culture, not necessarily the same as a sexual assault or whatever. But at the same time, if someone does not want those advances and they’re saying no and trying to push you away and trying to avoid you, then it makes it that way regardless of the culture.”    

When asked about when the allegations of sexual harassment first surfaced, Chandler said, “In the past year is when the allegation came forward from one individual. But in the course of this all happening, other individuals came forward and talked about instances – several which showed a pattern.”

Chandler’s resignation comes about five months after Capital Pride Alliance announced in a statement released in October 2025 that its then board president, Ashley Smith, resigned from his position on Oct. 18 after Capital Pride became aware of a “claim” regarding Smith. The statement said the group retained an independent firm to investigate the matter, but it released no further details since that time. Smith has declined to comment on the matter.

When asked by the Blade if the Smith resignation could be linked in some way to allegations of sexual misconduct, Chandler said, “I can’t make a comment one way or the other on that.”   

Chandler’s resignation and allegations come after Capital Pride Alliance has been credited with playing the lead role in organizing the World Pride celebration hosted by D.C. in which dozens of LGBTQ-related Pride events were held from May through June of 2025.

The letter of resignation also came just days before Capital Pride Alliance’s annual “Reveal” event scheduled for Feb. 26 at the Hamilton Hotel in which the theme for D.C.’s June 2026 LGBTQ Pride events was to be announced along with other Pride plans. 

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Capital Stonewall Democrats elect new leaders

LGBTQ political group set to celebrate 50th anniversary

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From left, Stevie McCarty and Brad Howard (Photos courtesy of Stonewall Democrats)

Longtime Democratic Party activists Stevie McCarty and Brad Howard won election last week as president and vice president for administration for the Capital Stonewall Democrats, D.C.’s largest local LGBTQ political organization.

In a Feb. 24 announcement, the group said McCarty and Howard, both of whom are elected DC Advisory Neighborhood Commissioners, ran in a special Capital Stonewall Democrats election to fill the two leadership positions that became vacant when the officers they replaced resigned.

 Outgoing President Howard Garrett, who McCarty has replaced, told the Washington Blade he resigned after taking on a new position as chair of the city’s Ward 1 Democratic Committee. The Capital Stonewall Democrats announcement didn’t say who Howard replaced as vice president for administration.

The group’s website shows its other officers include Elizabeth Mitchell as Vice President for Legislative and Political Affairs, and Monica Nemeth as Treasurer. The officer position of secretary is vacant, the website shows.

“As we look toward 2026, the stakes for D.C. and for LGBTQ+ communities have never been clearer,” the group’s statement announcing McCarty and Howard’s election says. “Our 50th anniversary celebration on March 20 and the launch of our D.C. LGBTQ+ Voter’s Guide mark the beginning of a major year for endorsements, organizing, and coalition building,” the statement says. 

McCarty said among the organization’s major endeavors will be holding virtual endorsement forums where candidates running for D.C. mayor and the Council will appear and seek the group’s endorsement. 

Founded in 1976 as the Gertrude Stein Democratic Club, the organization’s members voted in 2021 to change its name to Capital Stonewall Democrats. McCarty said the 50th anniversary celebration on March 20, in which D.C. Mayor Muriel Bowser and members of the D.C. Council are expected to attend, will be held at the PEPCO Gallery meeting center at 702 8th St., N.W.

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