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DC trans group files for bankruptcy

T.H.E. seeks Chapter 11 protection; reports $566,000 in debt

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Earline Budd, T.H.E., Transgender Health Empowerment, gay news, Washington Blade
Earline Budd, gay news, gay politics dc

Transgender activist and one of DC trans group T.H.E.’s founders, Earline Budd, is owed $4,615 in back wages. (Washington Blade file photo by Michael Key)

Transgender Health Empowerment, which has been recognized as D.C.’s preeminent organization advocating for and providing services to the transgender community since 2004, filed for Chapter 11 bankruptcy on July 7.

The 56-page bankruptcy filing came two months after the D.C. government revoked or suspended most of its contracts and grants for T.H.E.  The cut off in funds came after D.C. officials learned the IRS filed tax liens against the group seeking to recover more than $260,000 in unpaid payroll taxes, possibly including penalties, that accumulated since 2008.

D.C. Mayor Vincent Gray, who praised T.H.E.’s work on behalf of the LGBT community, said the city was forced to withdraw its funding for the group under a “clean hands” policy that bars city funding for vendors and service providers found to be in violation of the law, including federal and local tax laws.

LGBT activists familiar with the group have said it ceased most of its operations and laid off nearly all of its employees at the time the city cut off its funding for the group.

T.H.E.’s bankruptcy filing with the United States Bankruptcy Court for the District of Columbia shows it has total remaining assets of $37,009 and liabilities totaling $566,544.26.

The filing identifies the IRS as the single largest creditor, showing the group owes $264,247.91 in employee federal payroll taxes between 2008 and 2013. The filing shows T.H.E. owes the D.C. government $22,485 in employee withholding taxes and $15,663 in D.C. “unemployment” taxes.

The group owes the State of Maryland $8,695 in “employment taxes/withholding” for 2012 and 2013, according to the bankruptcy filing.

Under the U.S. bankruptcy law, a Chapter 11 filing allows a business or organization to obtain temporary relief from paying its creditors while it reorganizes its corporate structure and works out a plan with creditors to eventually repay the debt.

Records filed with the bankruptcy court show that a meeting of creditors is scheduled to take place at the court, located at 333 Constitution Ave., N.W., at 3 p.m. on Aug. 8.

In a press release issued on Wednesday, T.H.E. discussed its financial problems for the first time since news of its money problems surfaced earlier this year.

“Transgender Health Empowerment (T.H.E.), a non-profit group that has provided a wide range of services for D.C.’s TGLB (Transgender, Gay, Lesbian and Bisexual) HIV+ and homeless community since 2004 has been struggling with financial challenges that have prompted us to curtail some services and suspend others,” the press release says.

“Communicating with our community and clients is of utmost importance to the Board of Directors, along with overseeing solid organization recovery,” it says.

The release, however, makes no mention of the bankruptcy filing, saying only, “Our renewed goal is to protect the organization financially to ensure that programs and services that are being provided have adequate support and to ensure that the actions of those we entrust adhere to the policies and direction set by the Board of Directors.”

Although T.H.E. has not published the names of its board members since its website was shut down earlier this year, the bankruptcy filing identifies 11 people as current board members. Among those identified as board members in the filing is D.C. Council member Jim Graham (D-Ward 1).

However, Graham told the Blade on Tuesday that he is not now and has never been a T.H.E. board member. Instead, Graham said he has served on a T.H.E. advisory committee.

The filing identifies Rhonda Steward as interim chair of the board, Marjorie Borders as secretary and Rodney Pierce as treasurer. Gay Democratic activist Bradley Lewis is listed as a member of the board.

The T.H.E. press release, which appears to have been issued by the board, doesn’t mention the role the group’s executive director for over five years, Anthony Hall, will play in the reorganization.

Hall and other T.H.E. officials have declined to respond to requests by the Blade since May for an explanation of the root causes of the organization’s financial problems.

A document obtained by the Blade from the D.C. Department of Health through a Freedom of Information Act request, says the DOH decided in early May to discontinue its funding for T.H.E. after learning that the IRS had filed tax liens against the group and its financial prospects were grim.

The April 24 document, identified as a Programmatic Site Visit Report, says Hall told DOH officials during their visit to T.H.E.’s headquarters at 3339 10th Place, S.E., that much of the group’s financial problems stemmed from outstanding debts with the IRS and D.C. and Maryland tax offices related to unpaid payroll withholding taxes.

“This, he mentioned, was the result of incorrect filings of successive accountants,” the DOH report says. “He has since contracted with Wells Fargo Bank to manage the organization’s payroll and remit all withholdings and related tax obligations.”

But according to the report, “T.H.E. has no cash on hand and does not appear to have a realistic chance of working out a resolution with the IRS…Many of their staff has already been laid off and a limited few are volunteering to perform limited duties,” it says.

“Their clients are already impacted and have limited or no servicers…In all practicality, T.H.E. has already shut their doors and cannot even be paid were they to invoice further.”

The report recommended that all DOH sub-grants “be suspended immediately and appropriate providers identified to provide the services.”

Among the other creditors listed in the bankruptcy filing are 23 mostly former employees who are owed back wages ranging from between $3,000 and just over $5,000. Included among them are longtime transgender activist and one of T.H.E.’s founders, Earline Budd, who is owed $4,615 in back wages. Gay activist Brian Watson, who has served as a T.H.E. program officer, is owed $5,653, according to the bankruptcy filing.

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Maryland

Md. Commission on LGBTQIA+ Affairs released updated student recommendations

LGBTQ students report higher rates of bullying, suicide

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(Washington Blade photo by Ernesto Valle)

The Maryland Commission on LGBTQIA+ Affairs has released updated recommendations on how the state’s schools can support LGBTQ students.

The updated 16-page document outlines eight “actionable recommendations” for Maryland schools, supplemented with data and links to additional resources. The recommendations are: 

  • Developing and passing a uniform statewide and comprehensive policy aimed at protecting “transgender, nonbinary, and gender expansive students” against discrimination. The recommendation lists minimum requirements for the policy to address: name, pronoun usage, and restroom access.
  • Requiring all educators to receive training about the specific needs of LGBTQ students, by trained facilitators. The training’s “core competencies” include instruction on terminology, data, and support for students.
  • Implementing LGBTQ-inclusive curricula and preventing book bans. The report highlights a “comprehensive sexual education curriculum” as specifically important in the overall education curriculum. It also states the curriculum will “provide all students with life-saving information about how to protect themselves and others in sexual and romantic situations.” 
  • Establishing Gender Sexuality Alliances “at all schools and in all grade levels.” This recommendation includes measures on how to adequately establish effective GSAs, such as campaign advertising, and official state resources that outline how to establish and maintain a GSA. 
  • Providing resources to students’ family members and supporters. This recommendation proposes partnering with local education agencies to provide “culturally responsive, LGBTQIA+ affirming family engagement initiatives.” 
  • Collecting statewide data on LGBTQ youth. The data on Maryland’s LGBTQ youth population is sparse and non-exhaustive, and this recommendation seeks to collect information to inform policy and programming across the state for LGBTQ youth. 
  • Hiring a full-time team at the Maryland Department of Education that focuses on LGBTQ student achievement. These employees would have specific duties that include “advising on local and state, and federal policy” as well as developing the LGBTQ curriculum, and organizing the data and family resources. 
  • Promoting and ensuring awareness of the 2024 guidelines to support LGBTQ students. 

The commission has 21 members, with elections every year, and open volunteer positions. It was created in 2021 and amended in 2023 to add more members.

The Governor’s Office of Communication says the commission’s goal is “to serve LGBTQIA+ Marylanders by galvanizing community voices, researching and addressing challenges, and advocating for policies to advance equity and inclusion.” 

The commission is tasked with coming up with yearly recommendations. This year’s aim “to ensure that every child can learn in a safe, inclusive, and supportive environment.” 

The Human Rights Campaign’s most recent report on LGBTQ youth revealed that 46.1 percent of LGBTQ youth felt unsafe in some school settings. Those numbers are higher for transgender students, with 54.9 percent of them saying they feel unsafe in school. 

Maryland’s High School Youth Risk Behavior Survey reveals a disparity in mental health issues and concerns among students who identify as LGBTQ, compared to those who are heterosexual. LGBTQ students report higher rates of bullying, feelings of hopelessness, and suicidal thoughts. Nearly 36 percent of LGBTQ students report they have a suicide plan, and 26.7 percent of respondents say they have attempted to die by suicide. 

The commission’s recommendations seek to combat the mental health crisis among the state’s LGBTQ students. They are also a call for local and state governments to work towards implementing them. 

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Virginia

Va. lawmakers consider partial restoration of Ryan White funds

State Department of Health in 2025 cut $20 million from Part B program

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Virginia Capitol (Washington Blade photo by Michael Key)

​​The Virginia General Assembly is considering the partial restoration of HIV funding that the state’s Department of Health cut last year.

The Department of Health in 2025 cut $20 million — or 67 percent of total funding — from the Ryan White Part B program. 

The funding cuts started with the Trump-Vance administration passing budget cuts to federal HIV screening and protection programs. Rebate issues between the Virginia Department of Health and the company that provides HIV medications began.

Advocates say the funding cuts have disproportionately impacted lower-income people.

The Ryan White HIV/AIDS Program, a federal program started in 1990, provides medical services, public education, and essential services. Part B offers 21 services, seven of which remained funded after the budget cuts. 

Equality Virginia notes “in 2025, a 67 percent reduction severely destabilized HIV services across the commonwealth.” 

Virginia lawmakers have approved two bills — House Bill 30 and Senate Bill 30 — that would partially restore the funding. The Ryan White cuts remain a concern among community members. 

Both chambers of the General Assembly must review their proposed changes before lawmakers can adopt the bills.

“While these amendments aren’t a full restoration of what community-based organizations lost, this marks a critical step toward stabilizing care for thousands of Virginians living with HIV,” said Equality Virginia Executive Director Narissa Rahaman. “Equality Virginia plans to continue their contact with lawmakers and delegates through the conference and up until the passing of the budget.” 

“We appreciate lawmakers from both sides of the aisle who recognized the urgency of this moment and will work to ensure funding remains in the final version signed by the governor,” added Rahaman.

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District of Columbia

D.C. Black Pride theme, performers announced at ‘Speakeasy’

Durand Bernarr to headline 2026 programming

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Center for Black Equity President and CEO Kenya Hutton announces 'New Black Renaissance' as the theme for 2026 DC Black Pride. (Washington Blade photo by Michael Key)

The Center for Black Equity held its 2026 DC Black Pride Theme Reveal event at Union Stage on Monday. The evening, a “Speakeasy Happy Hour,” was hosted by Anthony Oakes and featured performances by Lolita Leopard and Keith Angelo. The Center for Black Equity organizes DC Black Pride.

Kenya Hutton, Center for Black Equity president and CEO, spoke following the performances by Leopard and Angelo. Hutton announced this year’s theme for DC Black Pride: “New Black Renaissance.”

Performers for 2026 DC Black Pride were announced to be Bang Garcon, Be Steadwell, Jay Columbus, Bennu Byrd, Rue Pratt and Akeem Woods.

Singer-songwriter Durand Bernarr was announced as the headliner for the 2026 festivities. Bernerr gave brief remarks through a video played on the screen at the stage.

DC Black Pride is scheduled for May 22-25. For more information on DC Black Pride, visit dcblackpride.org.

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