Local
DC trans group files for bankruptcy
T.H.E. seeks Chapter 11 protection; reports $566,000 in debt

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.
Maryland
FreeState Justice launches 501(c)(4) group
FreeState Equality will focus on policy and advocacy
FreeState Justice, an LGBTQ organization that provides legal services, community programs, and public education in Maryland, announced the launch of FreeState Equality on Wednesday.
The new, independent organization intends to pursue advocacy and policy work beyond the legal capability of FreeState Justice, a 501(c)(3) non-profit. FreeState Equality functions as a 501(c)(4) organization, meaning it can partake in political activity.
“We are committed to transparency throughout this process and look forward to continuing our work together in service of LGBTQ+ Marylanders,” said FreeState Justice Executive Director Phillip Westry.
FreeState Equality will take on policy, advocacy, and civic engagement initiatives while FreeState Justice will pursue legal and direct-service work, according to Westry.
While both organizations adhere to similar values, they will feature separate leadership, operations and compliance.
FreeState Equality is hosting its first launch fundraiser on Dec. 10 at the Brass Tap in Baltimore. The event, held from 5-7 p.m., will feature insight from FreeState Equality staff about how Maryland policy can support the state’s LGBTQ community.
Attendees can purchase fundraiser tickets on Zeffy for $25 general admission, which includes a free first drink. The organization also welcomes additional donations.
By LEE O. SANDERLIN, PAMELA WOOD and BRENDA WINTRODE | Maryland House of Delegates Speaker Adrienne A. Jones, the first woman and first person of color to hold her position, stepped down from her leadership post Thursday, effective immediately.
Jones, 71, has been a member of the legislature since 1997 and ascended to the top role in 2019 following the death of longtime House Speaker Michael E. Busch.
Jones held a meeting with top House Democratic leaders Thursday afternoon, sources said, at which she informed them of her decision. In a statement, Jones described the changes of life’s seasons and said she was ready to focus on what lies ahead.
The rest of this article can be found on the Baltimore Banner’s website.
District of Columbia
Activists praise Mayor Bowser’s impact on city, LGBTQ community
‘She made sure LGBTQ residents knew they were seen, valued, loved’
Members of D.C.’s LGBTQ community offered their thoughts on the impact Mayor Muriel Bowser has had on them, the city, and LGBTQ people in statements and interviews with the Washington Blade in the week following Bowser’s announcement that she will not run for re-election in 2026.
Bowser’s Nov. 25 announcement came during the third year of her third four-year term in office as mayor and after she served as a member of the D.C. Council representing Ward 4 from 2007 to Jan. 2, 2015, when she took office as mayor.
The LGBTQ activists and mayoral staffers who spoke to the Blade agreed that Bowser has been an outspoken and dedicated supporter on a wide range of LGBTQ-related issues starting from her time as a Council member and throughout her years as mayor.
Among them is one of the mayor’s numerous openly LGBTQ staff members, Jim Slattery, who has served in the Cabinet-level position as the Mayor’s Correspondence Officer since Bowser first became mayor.
“As Mayor Muriel Bowser’s longest serving LGBTQIA+ staffer – dating back to her first term as the Ward 4 Council member – and a proud member of her Cabinet since day one of her administration, I have had the opportunity to witness her at work for the people she serves and leads,” Slattery said in a statement. “Noteworthy is that throughout the entirety of my 27 years in District government, I have always been able to do so as an out and proud gay man,” he stated.
Slattery added that he has witnessed first-hand Bowser’s “absolute belief” in supporting the LGBTQ community.

“She has led on HIV/AIDS prevention and treatment, on shelter for vulnerable members of our community, housing for older members of the community, and has been a reliable and constant presence at events to LGBTQIA+ residents,” Slattery said. Among those events, he said, have been World AIDS Day, the D.C. Pride Parade, the 17th Street LGBTQ High Heel Race, and WorldPride 2025, which D.C. hosted with strong support from the mayor’s office.
Ryan Bos, CEO & president of Capital Pride Alliance, the D.C. group that organizes the city’s annual LGBTQ Pride events and served as lead organizer of WorldPride 2025, praised Bowser for being a longtime supporter of that organization.
“She played a very supportive role in helping us as an organization grow and to be able to bring WorldPride to Washington, D.C.,” Bos told the Blade. “And we commend her years of service, And our hope is that she helps us to continue to advocate for the support from the D.C. government of the LGBTQ+ community, especially during these times,” Bos said.
Bos, who was referring to the Trump administration’s hostility toward LGBTQ issues and sharp cutbacks in federal funds for nonprofit organizations, including LGBTQ organizations, said Capital Pride Alliance appreciated Bowser’s efforts to provide city funding for events like WorldPride.
“She provided support through the event process of WorldPride and ultimately along with the D.C. Council provided necessary funding to ensure WorldPride was a success,” Bos said. “And we are proud that we are able to show that Capital Pride and WorldPride had such a large economic impact for D.C. and the D.C. government,” he added.
Marvin Bowser, Mayor Bowser’s gay brother who operates a local photography business and has been active in the D.C. LGBTQ community for many years, said he has also witnessed first-hand his sister’s support for the LGBTQ community and all D.C. residents since the time she became a Council member and even before that.
Among his vivid memories, he said, was his sister’s strong support for the marriage equality law legalizing same-sex marriage in D.C. that the Council approved in 2009 under then-Mayor Adrian Fenty.
“I remember the first time she was standing up and giving clear and unequivocal support to the community when that law passed,” Marvin Bowser told the Blade. “And she was front and center in speaking very strongly in support of marriage equality,” he said.
Marvin Bowser also credits his sister with expanding and strengthening the then-Mayor’s Office of GLBT Affairs, among other things, by appointing advocate Sheila Alexander Reid as the office’s director in 2015.
Reid, who for many years prior to becoming director of the GLBT Affairs office was founder and publisher of the national lesbian publication Women In The Life, had the reputation of a “rock star,” according to Marvin Bowser.
He recalls that Mayor Bowser also played a lead role in D.C.’s bid to host to the quadrennial international LGBTQ sports competition Gay Games for 2022.
D.C lost its bid for the 2022 Gay Games after the Federation of Gay Games selected Hong Kong to host the event in an action that Marvin Bowser says was unfair and based on the effort to hold the Gay Games for the first time in Asia even though D.C. had a stronger bid for carrying out the event.
“Everything she’s done for the community has been very visible and from the heart,” he said of Muriel Bowser. “And in my personal relationship with her, she has also been nothing but absolutely supportive of me and my partner over the years,” he said.
“And we were just at her house helping her put up Christmas decorations,” he added. “And so, it’s been wonderful having her as a sister.”
Veteran D.C. LGBTQ advocate Japer Bowles, who serves as the current director of the Mayor’s Office of LGBTQ Affairs, discussed the mayor’s record on LGBTQ issues in his own statement to the Blade.
“Mayor Muriel Bowser has been an unwavering champion for D.C.’s lesbian, gay, bisexual, transgender, queer, intersex, and asexual community and movement,” he said. “Her more than 20 years of leadership brought consistent and historic investments for our LGBTQIA+ youth, seniors, veterans, and residents experiencing homelessness as well as impactful violence-prevention initiatives,” he added.
“Under her leadership, the Mayor’s Office of LGBTQ Affairs grew into a national leader, delivering more than $10 million in community grants for LGBTQIA+ programs and managing 110 Housing Choice vouchers,” Bowles said in his statement.
“Because of her work, we are stronger, safer, more visible, and, proudly, ‘the gayest city in the world,’” he said in quoting Bowser’s often stated comment at LGBTQ events about D.C. being the world’s gayest city.
In a statement that might surprise some in the LGBTQ community, gay D.C. small business owner Salah Czapary, who served from 2022 to 2024 as director of the Mayor’s Office of Nightlife and Culture as a Bowser appointee, criticized some of the city’s non-LGBTQ related polices under the Bowser administration as being harmful to small businesses.
Bowser appointed Czapary, a former D.C. police officer, to the nightlife office position shortly after he lost his race as an openly gay candidate for the Ward 1 D.C. Council seat held by incumbent Brianne Nadeau.
“Mayor Bowser led D.C. through turbulent years and major growth, and we can all be proud of her leadership on many fronts,” Czapary said in a statement to the Blade. “She is also setting an example that more leaders should follow by stepping aside to allow a new generation to lead,” he said. “But as we turn the page, we must be honest about what the next mayor should deliver,” he says in his statement.
Without mentioning Bowser by name, he went on to list at least four things the next mayor should do that implied that Bowser did not do or did wrong. Among them were treating the D.C. Council as a “true governing partner,” not letting residents and small businesses “feel the weight of outdated, slow, and unresponsive systems,” and the need for leadership that “values competence over loyalty.”
He added that a “reversal” by the city of the city’s streetery program that was put in place during the COVID pandemic to allow restaurants to install outdoor seating into street parking lanes, was a “roll it back” on progress for small businesses.
He concluded by stating, “LGBTQ rights and inclusion are among the many fronts on which we can be very proud of the mayor’s leadership.”
The mayor’s office did not immediately respond to an offer by the Blade to give the office an opportunity to respond to Czapary’s statement.
A significantly different perspective was given by Sheila Alexander Reid, who said she was proud to serve as director of the Mayor’s LGBTQ Affairs Office during the first six-and-a-half years of Bowser’s tenure as mayor.
“I watched her evolve from a newly elected mayor finding her footing into a confident, seasoned leader who met every challenge head-on and time after time slayed the competition,” Alexander Reid said in a statement to the Blade.

“With each year in office, her voice grew stronger, more grounded, and more fearless,” her statement continues. “And she needed that strength, because being a Black woman mayor is not for the faint of heart, But Mayor Bowser never backed down. Instead, she showed the city what courageous, compassionate leadership truly looks like.”
Alexander Reid added that Bowser funded a new LGBTQ Community Center facility, expanded a workforce development program for the transgender community, and “made D.C. the first jurisdiction in the nation to require LGBTQ+ cultural competency training for healthcare providers.”
She also pointed to the mayor’s LGBTQ “safety nets” through low-barrier shelters and housing vouchers and her support for LGBTQ celebrations like the 17th Street High Heel Race.
“But what inspired me most was this,” Alexander Reid stated. “At a time when some elected officials across the country were retreating from LGBTQ support, Mayor Bowser was doing the opposite. She leaned in, she doubled down. She made sure LGBTQ residents knew they were seen, valued, protected, and loved by their city.”
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