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
D.C. Council gives first approval to amended PrEP insurance bill
Removes weakening language after concerns raised by AIDS group
The D.C. Council voted unanimously on Feb. 3 to approve a bill on its first of two required votes that requires health insurance companies to cover the costs of HIV prevention or PrEP drugs for D.C. residents at risk for HIV infection.
The vote to approve the PrEP D.C. Amendment Act came immediately after the 13-member Council voted unanimously again to approve an amendment that removed language in the bill added last month by the Council’s Committee on Health that would require insurers to fully cover only one PrEP drug.
The amendment, introduced jointly by Council members Zachary Parker (D-Ward 5), who first introduced the bill in February 2025, and Christina Henderson (I-At-Large), who serves as chair of the Health Committee, requires insurers to cover all U.S. Food and Drug Administration approved PrEP drugs.
Under its rules, the D.C. Council must vote twice to approve all legislation, which must be signed by the D.C. mayor and undergo a 30-day review by Congress before it takes effect as a D.C. law.
Given its unanimous “first reading” vote of approval on Feb. 3, Parker told the Washington Blade he was certain the Council would approve the bill on its second and final vote expected in about two weeks.
Among those who raised concerns about the earlier version of the bill was Carl Schmid, executive director of the D.C.-based HIV+Hepatitis Policy Institute, who sent messages to all 13 Council members urging them to remove the language added by the Committee on Health requiring insurers to cover just one PrEP drug.
The change made by the committee, Schmid told Council members, “would actually reduce PrEP options for D.C. residents that are required by current federal law, limit patient choice, and place D.C. behind states that have enacted HIV prevention policies designed to remain in effect regardless of any federal changes.”
Schmid told the Washington Blade that although coverage requirements for insurers are currently provided through coverage standards recommended in the U.S. Affordable Care Act, known as Obamacare, AIDS advocacy organizations have called on D.C. and states to pass their own legislation requiring insurance coverage of PrEP in the event that the federal policies are weakened or removed by the Trump administration, which has already reduced or ended federal funding for HIV/AIDS-related programs.
“The sticking point was the language in the markup that insurers only had to cover one regimen of PrEP,” Parker told the Blade in a phone interview the night before the Council vote. “And advocates thought that moved the needle back in terms of coverage access, and I agree with them,” he said.
In anticipation that the Council would vote to approve the amendment and the underlying bill, Parker, the Council’s only gay member, added, “I think this is a win for our community. And this is a win in the fight against HIV/AIDS.”
During the Feb. 3 Council session, Henderson called on her fellow Council members to approve both the amendment she and Parker had introduced and the bill itself. But she did not say why her committee approved the changes that advocates say weakened the bill and that her and Parker’s amendment would undo. Schmid speculated that pressure from insurance companies may have played a role in the committee change requiring coverage of only one PrEP drug.
“My goal for advancing the ‘PrEP DC Amendment Act’ is to ensure that the District is building on the progress made in reducing new HIV infections every year,” Henderson said in a statement released after the Council vote. “On Friday, my office received concerns from advocates and community leaders about language regarding PrEP coverage,” she said.
“My team and I worked with Council member Parker, community leaders, including the HIV+Hepatitis Policy Institute and Whitman-Walker, and the Department of Insurance, Securities, and Banking, to craft a solution that clarifies our intent and provides greater access to these life-saving drugs for District residents by reducing consumer costs for any PrEP drug approved by the U.S. Food and Drug Administration,” her statement concludes.
In his own statement following the Council vote, Schmid thanked Henderson and Parker for initiating the amendment to improve the bill. “This will provide PrEP users with the opportunity to choose the best drug that meets their needs,” he said. “We look forward to the bill’s final reading and implementation.”
Maryland
4th Circuit dismisses lawsuit against Montgomery County schools’ pronoun policy
Substitute teacher Kimberly Polk challenged regulation in 2024
A federal appeals court has ruled Montgomery County Public Schools did not violate a substitute teacher’s constitutional rights when it required her to use students’ preferred pronouns in the classroom.
The 4th U.S. Circuit Court of Appeals in a 2-1 decision it released on Jan. 28 ruled against Kimberly Polk.
The policy states that “all students have the right to be referred to by their identified name and/or pronoun.”
“School staff members should address students by the name and pronoun corresponding to the gender identity that is consistently asserted at school,” it reads. “Students are not required to change their permanent student records as described in the next section (e.g., obtain a court-ordered name and/or new birth certificate) as a prerequisite to being addressed by the name and pronoun that corresponds to their identified name. To the extent possible, and consistent with these guidelines, school personnel will make efforts to maintain the confidentiality of the student’s transgender status.”
The Washington Post reported Polk, who became a substitute teacher in Montgomery County in 2021, in November 2022 requested a “religious accommodation, claiming that the policy went against her ‘sincerely held religious beliefs,’ which are ‘based on her understanding of her Christian religion and the Holy Bible.’”
U.S. District Judge Deborah Boardman in January 2025 dismissed Polk’s lawsuit that she filed in federal court in Beltsville. Polk appealed the decision to the 4th Circuit.
District of Columbia
Norton hailed as champion of LGBTQ rights
D.C. congressional delegate to retire after 36 years in U.S. House
LGBTQ rights advocates reflected on D.C. Congressional Del. Eleanor Holmes Norton’s longstanding advocacy and support for LGBTQ rights in Congress following her decision last month not to run for re-election this year.
Upon completing her current term in office in January 2027, Norton, a Democrat, will have served 18 two-year terms and 36 years in her role as the city’s non-voting delegate to the U.S. House.
LGBTQ advocates have joined city officials and community leaders in describing Norton as a highly effective advocate for D.C. under the city’s limited representation in Congress where she could not vote on the House floor but stood out in her work on House committees and moving, powerful speeches on the House floor.
“During her more than three decades in Congress, Eleanor Holmes Norton has been a champion for the District of Columbia and the LGBTQ+ community,” said David Stacy, vice president of government affairs for the Human Rights Campaign, the D.C.-based national LGBTQ advocacy organization.
“When Congress blocked implementation of D.C.’s domestic partnership registry, Norton led the fight to allow it to go into effect,” Stacey said. “When President Bush tried to ban marriage equality in every state and the District, Norton again stood up in opposition. And when Congress blocked HIV prevention efforts, Norton worked to end that interference in local control,” he said.

In reflecting the sentiment of many local and national LGBTQ advocates familiar with Norton’s work, Stacy added, “We have been lucky to have such an incredible champion. As her time in Congress comes to an end, we honor her extraordinary impact in the nation’s capital and beyond by standing together in pride and gratitude.”
Norton has been among the lead co-sponsors and outspoken supporters of LGBTQ rights legislation introduced in Congress since first taking office, including the currently pending Equality Act, which would ban employment discrimination based on sexual orientation and gender identity.
Activists familiar with Norton’s work also point out that she has played a lead role in opposing and helping to defeat anti-LGBTQ legislation. In 2018, Norton helped lead an effort to defeat a bill called the First Amendment Defense Act introduced by U.S. Sen. Mike Lee (R-Utah), which Norton said included language that could “gut” D.C.’s Human Rights Act’s provisions banning LGBTQ discrimination.
Norton pointed to a provision in the bill not immediately noticed by LGBTQ rights organizations that would define D.C.’s local government as a federal government entity and allow potential discrimination against LGBTQ people based on a “sincerely held religious belief.”
“This bill is the latest outrageous Republican attack on the District, focusing particularly on our LGBT community and the District’s right to self-government,” Norton said shortly after the bill was introduced. “We will not allow Republicans to discriminate against the LGBT community under the guise of religious liberty,” she said. Records show supporters have not secured the votes to pass it in several congressional sessions.
In 2011, Norton was credited with lining up sufficient opposition to plans by some Republican lawmakers to attempt to overturn D.C.’s same-sex marriage law, that the Council passed and the mayor signed in 2010.
In 2015, Norton also played a lead role opposing attempts by GOP members of Congress to overturn another D.C. law protecting LGBTQ students at religious schools, including the city’s Catholic University, from discrimination such as the denial of providing meeting space for an LGBTQ organization.
More recently, in 2024 Norton again led efforts to defeat an attempt by Republican House members to amend the D.C. budget bill that Congress must pass to eliminate funding for the Mayor’s Office of LGBTQ Affairs and to prohibit the city from using its funds to enforce the D.C. Human Rights Act in cases of discrimination against transgender people.
“The Republican amendment that would prohibit funds from being used to enforce anti-LGBTQ+ discrimination regulations and the amendment to defund the Mayor’s Office of LGBTQ+ Affairs are disgraceful attempts, in themselves, to discriminate against D.C.’s LGBTQ+ community while denying D.C. residents the limited governance over their local affairs to which they are entitled,” Norton told the Washington Blade.
In addition to pushing for LGBTQ supportive laws and opposing anti-LGBTQ measures Norton has spoken out against anti-LGBTQ hate crimes and called on the office of the U.S. Attorney for D.C. in 2020 to more aggressively prosecute anti-LGBTQ hate crimes.

“There is so much to be thankful for Eleanor Holmes Norton’s many years of service to all the citizens and residents of the District of Columbia,” said John Klenert, a member of the board of the LGBTQ Victory Fund. “Whether it was supporting its LGBTQ+ people for equal rights, HIV health issues, home rule protection, statehood for all 700,000 people, we could depend on her,” he said.
Ryan Bos, executive director of Capital Pride Alliance, the group that organizes D.C.’s annual LGBTQ Pride events, called Norton a “staunch” LGBTQ community ally and champion for LGBTQ supportive legislation in Congress.
“For decades, Congresswoman Norton has marched in the annual Capital Pride Parade, showing her pride and using her platform to bring voice and visibility in our fight to advance civil rights, end discrimination, and affirm the dignity of all LGBTQ+ people” Bos said. “We will be forever grateful for her ongoing advocacy and contributions to the LGBTQ+ movement.”
Howard Garrett, president of D.C.’s Capital Stonewall Democrats, called Norton a “consistent and principled advocate” for equality throughout her career. “She supported LGBTQ rights long before it was politically popular, advancing nondiscrimination protections and equal protection under the law,” he said.
“Eleanor was smart, tough, and did not suffer fools gladly,” said Rick Rosendall, former president of the D.C. Gay and Lesbian Activists Alliance. “But unlike many Democratic politicians a few decades ago who were not reliable on LGBTQ issues, she was always right there with us,” he said. “We didn’t have to explain our cause to her.”
Longtime D.C. gay Democratic activist Peter Rosenstein said he first met Norton when she served as chair of the New York City Human Rights Commission. “She got her start in the civil rights movement and has always been a brilliant advocate for equality,” Rosenstein said.
“She fought for women and for the LGBTQ community,” he said. “She always stood strong with us in all the battles the LGBTQ community had to fight in Congress. I have been honored to know her, thank her for her lifetime of service, and wish her only the best in a hard-earned retirement.”
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