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
Mary’s House founder, CEO retires
Dr. Imani Woody played leading role in opening DC’s first home for LGBTQ seniors
The board of directors for Mary’s House for Older Adults, DC’s first official home dedicated to providing affordable housing for LGBTQ seniors, announced on July 7 that its founding president and CEO, Dr. Imani Woody, has retired.
Woody, who holds a PhD in Human Services, is credited with playing a leading role over many years in arranging both city and private funding needed to construct and operate the Mary’s House three-story building located at 401 Anacostia Road, S.E., in the city’s Fort Dupont neighborhood.
The house, which opened in March 2025, with a grand opening ceremony held in May 2025, includes 15 single-occupancy residential units and more than 5,000 square feet of shared communal living space.
“It is with profound gratitude and hearts full of celebration that the board of directors of Mary’s House for Older Adults, DC (MHFOA) announces the retirement of our visionary founder, Dr. Imani Woody, from her role as president and CEO,” the Mary’s House board says in a statement.
“Dr. Woody’s journey with Mary’s House began with her vision and a kitchen table gathering of women with a bold, urgent, and loving vision: to create safe, affirming, affordable housing for LGBTQ/SGL older adults in Washington, DC,” the statement says.
It adds, “What started as a dream has grown into DC’s first affordable LGBTQ+/SGL affirming communal living space for adults 60 and over, a 15-room community residence at 401 Anacostia Road in Southeast Washington.”
The statement says Woody will continue to serve on Mary’s House board.
“The board will be sharing information about the leadership transition process in the coming weeks,” the statement continues. “We are committed to honoring Dr. Woody’s legacy by ensuring Mary’s House continues to thrive and grow in faithful service to LGBTQ/SGL elders experiencing housing insecurity and isolation.”
Maryland
Va., Md., advocates brace for next fight after Supreme Court sports ruling
Neither state has statewide ban on trans student athletes
On June 30, the U.S. Supreme Court cleared the way for states to enforce laws barring transgender students from participating on school sports teams consistent with their gender identity, a decision LGBTQ advocates say could encourage additional restrictions across the country.
While neither Maryland nor Virginia currently has a statewide ban on trans student athletes, advocates say the decision could reshape future legislative battles and school policies throughout the region.
Directly following the case, attorneys for trans student athletes spoke out about the case and how detrimental it could be to students.
“This ruling is deeply harmful for transgender women and girls who only asked for the ability to participate in sports with their peers,” said Sasha Buchert, senior attorney and director of the Nonbinary and Transgender Rights Project for Lambda Legal, in a press release from the American Civil Liberties Union.
The next step is figuring out how states will move forward, specifically in Maryland and Virginia.
As of right now, neither state has bans on trans athletes in schools. The new Supreme Court decision also does not require states to enact bans, only that bans are allowed if states or school districts choose to enforce them.
According to the ACLU, 27 states have banned trans youth from participating in school sports since 2020. Most of these states also require sex testing, which the organization says is invasive for all female athletes.
Equality Virginia Executive Director Narissa Rahaman said that while she has heard a lot of frustration following the decision, people are ready to take action.
“Families, parents and youth have lived through disappointing changes to the Virginia Department of Education’s model policies for the treatment of transgender students, and the Virginia High School League’s decades-old policy that allowed transgender students an opportunity to play sports with their friends,” Rahaman said in a statement to the Washington Blade.
She believes they are not ready to give up this fight quite yet.
As of now, trans and nonbinary students are protected under Virginia law, and Rahaman wants that to continue.
“This ruling will likely embolden right-wing members of the General Assembly to pursue trans athlete bans, and we will continue to defeat every bill like we have the past five legislative sessions. Now is our time to be proactive,” Rahaman said.
She also calls upon Democratic Gov. Abigail Spanberger to defend trans youth in Virginia from what she describes as bullies and to continue to stand up to federal attacks on the trans community in general.
For trans students, Rahaman wants to ensure that they continue to know that they belong and have a place in school sports.
“To the transgender young people watching this decision unfold: you belong on your team, in your school, in your community, and here in Virginia. This ruling does not change that. A single Supreme Court decision cannot define your worth or your future,” Rahaman said.
For people who may be outside the community but want to help, she encourages them to speak with trans and nonbinary people in their community, befriend the families of youth to show their support, and continue to speak up on these issues when needed.
According to ACLU of Virginia, high schooler Eliza Munshi was told she could not compete on the girls’ track team because she was trans. To prove a point, she decided to compete with the boys.
She had previously competed on the girls’s track team before her Virginia school decided to enforce the ban demanded by President Donald Trump. With pink hair and pink makeup, she decided to continue her love for the sport alongside boys. According to Munshi, her entire community rallied for her.
“I did it to prove a point. I knew I could do it. I knew it wouldn’t phase me. My gender itself and that label has been the least important part of my transition: I want to look how I want to look. I want to dress how I want to dress. If you don’t like that, then that’s not my business,” Munshi said.
DOE has launched Title IX probe against Md. school districts
In the weeks leading up to the ruling, multiple Maryland school districts were included in a Title IX probe stating that not enforcing sex-based protections guaranteed by federal law. Currently, there have been no updates on the lawsuit or the district’s decisions.
According to the U.S. Department of Education, the federal probe is based on parent complaints that the school districts were violating a specific Trump-Vance administration addition to Title IX, stating it aligned the sex-based protections “with biological reality, not ideological fantasy.”
According to FreeState Justice, an LGBTQ advocacy group in Maryland, while this is a disappointing ruling to see, they will continue to fight for trans student-athletes in Maryland and want trans youth to know that they belong.
“Every young person deserves the opportunity to participate in school and community life without being singled out because of who they are. These decisions send a harmful message to transgender youth that they are somehow less deserving of that opportunity,” said Phillip Westry, the group’s executive director.
Westry wants to make sure the community knows that their commitment to the organization has not changed and will continue to provide the same legal services they have prior and to advance policy solutions, to ensure “every LGBTQ+ Marylander can live with dignity, safety, and equal opportunity.”
Another issue brought up by trans advocates is the issue of testing women to determine whether they are biologically female or not.
According to Human Rights Watch, as of 2023, World Athletics required cis women with increased testosterone levels to undergo medical procedures to have it reduced to avoid advantages. Other forms of “sex verification” may include genetic testing, screenings of an athlete’s anatomy or chromosomes.
However, this can become detrimental because not all women have ovaries, a uterus, or XX chromosomes, meaning cisgender women could potentially be included in these bans, depending on how the specific state plans to enforce them.
Maryland
Eastern Shore school board wants an 18-and-over rule for young adult books
Classics like ‘To Kill a Mockingbird’ and ‘Little Women’ might be off limits to most students
By LIZ BOWIE | Somerset County’s school board is considering barring students under the age of 18 from reading any young-adult literature in school libraries, essentially restricting all but 12th graders from checking out books written for teens and tweens.
The proposed policy also calls for the superintendent to discipline librarians if “adult” reading material appears in the children’s section.
The policy defines young adult as students over 18. “Young adults are not minors and books suitable for young adults shall be placed on a separate Young Adults library section to reflect age-appropriate literature,” a draft of the policy says.
The rest of this article can be read on the Baltimore Banner’s website.
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