Local
Mayor confirms D.C. withholding funds from trans group
Health Department mum on help for displaced clients

‘We’ll work with them to try to get this resolved,’ said Mayor Vince Gray about T.H.E. ‘But they’re going to have to pay the taxes.’ (Washington Blade photo by Michael Key)
D.C. Mayor Vincent Gray acknowledged that tax liens filed against Transgender Health Empowerment by the IRS has forced the city to discontinue its funding for the organization, even though it has provided important services for the transgender community.
In an interview with the Washington Blade on Saturday, Gray said he was aware of ongoing financial problems at THE, the city’s oldest and most prominent transgender advocacy and services organization.
Among other things, the group has provided HIV and housing-related services for transgender clients through funding from city grants.
“I don’t know the details of how much and that sort of thing,” Gray said in referring to how much money THE owes the IRS.
“But any organization that has a grant from the government is going to have to comply with the basic rules of conformance with the requirements of the government, including paying your taxes,” he said.
“So while they certainly have been helpful and I have a lot of admiration for that organization, they are going to have to straighten this out,” Gray said. “It wouldn’t be fair if organization X is absolved of responsibility and organization Y would be held accountable for this.”
Added Gray, “So we’ll work with them to try to get this resolved. But they’re going to have to pay the taxes. There’s no question about that….It’s a basic, fundamental rule that any organization that has a grant or contract with the government – they have to take care of these basic administrative responsibilities.”
Gray’s comments came at a time when transgender activists have expressed concern that the D.C. Department of Health, which is responsible for monitoring THE grants, has not said whether it’s taking steps to redirect the group’s clients to other service providers.
“Transgender Health Empowerment (THE) has had to dramatically curtail their services due to financial difficulties,” said the D.C. Trans Coalition in a statement on May 9.
“This reduction happened very suddenly, and services trans community members depend on have been abruptly cut off,” the statement says. “Immediate action must be taken to ensure THE clients get services they need to ensure continuity of care.”
The statement says D.C. Trans Coalition “stands with THE’s clients and calls on the D.C. government, as THE’s primary funder, to act quickly to make sure that necessary services continue.”
A spokesperson for the Department of Health, as well as its gay interim director, Dr. Saul Levin, and the gay head of the department’s HIV/AIDS office, Dr. Gregory Pappas, have not responded to requests for comment and requests for information on the THE situation from the Blade.
THE’s executive director, Anthony Hall, has also declined to comment. Brian Devine, THE’s finance manager, told the Blade the group’s board of directors, which met recently, decided the organization would not issue a statement at the present time.
Transgender activist Ruby Corado, director of Casa Ruby, an LGBT community center in Columbia Heights that reaches out to the Latino and transgender communities, said THE clients have approached Casa Ruby for assistance after discovering that services at THE were no longer available to them.
She said officials with the Department of Health had not responded to her request for information about who, if anyone, would provide help for the THE clients displaced by THE’s reduction in services.
“I have an issue with the government doing that,” Corado said. “You just don’t drop people like that. If you are withholding money from an agency that is providing services you need to make sure that in the meantime you are able to transition the clients,” she said. “And I don’t think that has happened.”
Public records at the D.C. Office of the Recorder of Deeds show that the IRS filed at least 10 liens against THE since early 2010. Most are due to THE’s failure to pay employee payroll taxes, the records show.
As a non-profit organization, THE is not required to pay taxes on income from private donations, government grants or other income sources.
Another sign of THE’s financial problems surfaced last week when its web hosting company suspended the group’s website. “This site has stepped out for a bit,” a note on the only remaining page of the site says. A phone number on the page directed to the “site owner” takes callers to the billing department of the web hosting company Go Daddy.
Rehoboth Beach
Rehoboth’s Blue Moon is for sale but owners aim to keep it in gay-friendly hands
$4.5 million listing includes real estate; business sold separately
Gay gasps could be heard around the DMV earlier this week when a real estate listing for Rehoboth Beach’s iconic Blue Moon bar and restaurant hit social media.
Take a breath. The Moon is for sale but the longtime owners are not in a hurry and are committed to preserving its legacy as a gay-friendly space.
“We had no idea the interest this would create,” Tim Ragan, one of the owners, told the Blade this week. “I guess I was a little naive about that.”
Ragan explained that he and longtime partner Randy Haney are separating the real estate from the business. The two buildings associated with the sale are listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They are listed for $4.5 million.
The bar and restaurant business is being sold separately; the price has not been publicly disclosed.
But Ragan, who has owned the Moon for 20 years, told the Blade nothing is imminent and that the Moon remains open through the holidays and is scheduled to reopen for the 2026 season on Feb. 10. He has already scheduled some 2026 entertainment.
“It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” Ragan said, noting that he turns 70 next year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.”
He said there have been many inquiries and they’ve considered some offers but nothing is firm yet.
Given the Moon’s pioneering role in queering Rehoboth Beach since its debut 44 years ago in 1981, many LGBTQ visitors and residents are concerned about losing such an iconic queer space to redevelopment or chain ownership.
“That’s the No. 1 consideration,” Ragan said, “preserving a commitment to the gay community and honoring its history. The legacy needs to continue.” He added that they are not inclined to sell to one of the local restaurant chains.
You can view the real estate listing here.
The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected].
Congratulations to Tristan Fitzpatrick on his new position as Digital Communications Manager with TerraPower. TerraPower creates technologies to provide safe, affordable, and abundant carbon-free energy. They devise ways to use heat and electricity to drive economic growth while decarbonizing industry.
Fitzpatrick’s most recent position was as Senior Communications Consultant with APCO in Washington, D.C. He led integrated communications campaigns at the fourth-largest public relations firm in the United States, increasing share of voice by 10 percent on average for clients in the climate, energy, health, manufacturing, and the technology. Prior to that he was a journalist and social media coordinator with Science Node in Bloomington, Ind.
Fitzpatrick earned his bachelor’s degree in journalism with a concentration in public relations, from Indiana University.
Congratulations also to the newly elected board of Q Street. Rob Curis, Abigail Harris, Yesenia Henninger, Stu Malec, and David Reid. Four of them reelected, and the new member is Harris.
Q Street is the nonprofit, nonpartisan, professional association of LGBTQ+ policy and political professionals, including lobbyists and public policy advocates. Founded in 2003 on the heels of the Supreme Court’s historic decision in Lawrence v. Texas, when there was renewed hope for advancing the rights of the LGBTQ community in Washington. Q Street was formed to be the bridge between LGBTQ advocacy organizations, LGBTQ lobbyists on K Street, and colleagues and allies on Capitol Hill.
District of Columbia
New queer bar Rush beset by troubles; liquor license suspended
Staff claim they haven’t been paid, turn to GoFundMe as holidays approach
The D.C. Alcoholic Beverage and Cannabis Board on Dec. 17 issued an order suspending the liquor license for the recently opened LGBTQ bar and nightclub Rush on grounds that it failed to pay a required annual licensing fee.
Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14 Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker.
It describes itself on its website as offering “art-pop aesthetics, high-energy nights” in a space that “celebrates queer culture without holding back.” It includes a large dance floor and a lounge area with sofas and chairs.
Jackson Mosley, Rush’s principal owner, did not immediately respond to a phone message from the Washington Blade seeking his comment on the license suspension.
The ABC Board’s order states, “The basis for this Order is that a review of the Board’s official records by the Alcoholic Beverage and Cannabis Administration (ABCA) has determined that the Respondent’s renewal payment check was returned unpaid and alternative payment was not submitted.”
The three-page order adds, “Notwithstanding ABCA’s efforts to notify the Respondent of the renewal payment check return, the Respondent failed to pay the license fee for the period of 2025 to 2026 for its Retailer’s Class CT license. Therefore, the Respondent’s license has been SUSPENDED until the Respondent pays the license fees and the $50.00 per day fine imposed by the Board for late payment.”
ABCA spokesperson Mary McNamara told the Blade that the check from Rush that was returned without payment was for $12,687, which she said was based on Rush’s decision to pay the license fee for four years. She said that for Rush to get its liquor license reinstated it must now pay $3,819 for a one-year license fee plus a $100 bounced check fee, a $750 late fee, and $230 transfer fee, at a total of $4,919 due.
Under D.C. law, bars, restaurants and other businesses that normally serve alcoholic beverages can remain open without a city liquor license as long as they do not sell or serve alcohol.
But D.C. drag performer John Marsh, who performs under the name Cake Pop and who is among the Rush employees, said Rush did not open on Wednesday, Dec. 17, the day the liquor board order was issued. He said that when it first opened, Rush limited its operating days from Wednesday through Sunday and was not open Mondays and Tuesdays.
Marsh also said none of the Rush employees received what was to be their first monthly salary payment on Dec. 15. He said approximately 20 employees set up a GoFundMe fundraising site to raise money to help sustain them during the holiday period after assuming they will not be paid.
He said he doubted that any of the employees would return to work in the unlikely case that Mosley would attempt to reopen Rush without serving liquor or if he were to pay the licensing fee to allow him to resume serving alcohol without having received their salary payment.
As if all that were not enough, Mosley would be facing yet another less serious problem related to the Rush policy of not accepting cash payments from customers and only accepting credit card payments. A D.C. law that went into effect Jan. 1, 2025, prohibits retail businesses such as restaurants and bars from not accepting cash payments.
A spokesperson for the D.C. Department of Licensing and Consumer Protection, which is in charge of enforcing that law, couldn’t immediately be reached to determine what the penalty is for a violation of the law requiring that type of business to accept cash payments.
The employee GoFundMe site, which includes messages from several of the employees, can be accessed here.
Mosley on Thursday responded to the reports about his business with a statement on the Rush website.
He claims that employees were not paid because of a “tax-related mismatch between federal and District records” and that some performers were later paid. He offers a convoluted explanation as to why payroll wasn’t processed after the tax issue was resolved, claiming the bank issued paper checks.
“After contacting our payroll provider and bank, it was determined that electronic funds had been halted overnight,” according to the statement. “The only parties capable of doing so were the managers of the outside investment syndicate that agreed to handle our stabilization over the course of the initial three months in business.”
Mosley further said he has not left the D.C. area and denounced “rumors” spread by a former employee. He disputes the ABCA assertion that the Rush liquor license was suspended due to a “bounced check.” Mosley ends his post by insisting that Rush will reopen, though he did not provide a reopening date.
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