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.
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Congratulations to Congresswoman Sarah McBride (D-Del.) on being honored with this year’s Stonewall Award from Whitman-Walker Health. Amy Nelson, senior director of Legal Services, said, “Congresswoman Sarah McBride is working to make healthcare accessible to all, and this award recognizes her support of healthcare as a human right. Our legal program supports families facing unprecedented challenges to stay healthy and safe – families that Congresswoman McBride champions with a deep understanding of the issues they face and the legislative expertise of how to support them.”
McBride, in a press release, said, “I am honored to accept this year’s Stonewall Award from Whitman-Walker Health — an organization that has spent 40 years doing vital work to ensure every person can access the dignity of care. In the wealthiest and most developed nation on earth, the ability to receive care should not be a matter of luck—it should be the law of the land. I am proud to be recognized as a partner in this work and to support Whitman-Walker Health in their mission to build a healthier society for all.”
Congratulations also to Wes Drummond who will join Clear Space Theatre Company in Rehoboth Beach, Del., as its third artistic director. Managing Director Joe Gfaller said, “This is an exciting moment of growth for Clear Space as we welcome Wes to join our remarkable team. I am confident he will be an excellent partner as we work with our entire staff, board, and committed team of volunteers, to ensure Clear Space can achieve its full potential in pursuit of our mission to unite and enrich our community through every production on stage, and every arts-based learning program we offer throughout our community.”
On accepting the position Drummond said, “I’m honored to join Clear Space Theatre Company as artistic director, and beyond excited for what we’re about to create together. Clear Space has established itself as a vital and vibrant part of the cultural life of coastal Delaware, and I feel incredibly fortunate to step into this next chapter alongside such a passionate and dedicated team. Rehoboth Beach is a place defined by creativity and community, and I look forward to listening, learning, and building meaningful relationships across the region in the months ahead. My vision is to help Clear Space continue to grow as a bold, forward-thinking, cultural force, that champions fearless storytelling.”
Drummond served in leadership roles at Duluth Playhouse in Duluth, Minn., from 2021 to 2026, including four years as executive director followed by one year as executive producing artistic director, guiding the organization through a period of significant transformation and stability in the wake of the COVID-19 pandemic. As a director, he has worked extensively in New York City, Chicago, and at regional theaters across the country, directing both musical theater and plays with a focus on storytelling that bridges classical works with contemporary perspectives. He has collaborated with leading figures in the industry, including Tony Award-winning director Matthew Warchus, and Tony-nominated director Michael Greif. He is an associate member of the Stage Directors and Choreographers Society.
Wes earned his MFA in directing, Penn State University, where he studied under Tony-nominated director, Susan H. Schulman.
Virginia
Va. Supreme Court invalidates Democrat-backed redistricting plan
Voters narrowly approved new congressional districts last month
The Virginia Supreme Court on Friday struck down a Democrat-backed redistricting plan that voters approved last month.
Ten of 11 of Virginia’s congressional districts favor Democrats in the plan that passed by a 51-48 vote margin in last month’s referendum.
The Human Rights Campaign PAC is among the groups that support it. The court by a 4-3 majority invalidated the referendum results.
District of Columbia
Maren Morris to headline Capital Pride Concert
Grammy award-winning singer/songwriter came out as bisexual in 2024
Capital Pride Alliance, the group that organizes D.C.’s annual LGBTQ Pride events, announced on May 7 that nationally acclaimed singer-songwriter Maren Morris, who identifies as bisexual, will be the headline performer at this year’s Capital Pride Concert scheduled for June 21.
The concert takes place as part of the annual Capital Pride Festival held on Pennsylvania Avenue, N.W., usually between 3rd Street near the U.S. Capitol and 9th Street.
“Morris, known for her genre-blending sound and outspoken support of LGBTQ+ rights, will be joined by a standout lineup, including acclaimed queer rapper Leikeli47, pop icon Lisa Lisa, Juno-nominated producer and DJ from the ‘Heated Rivalry’ soundtrack, Harrison, and ‘RuPaul’s Drag Race’ Season 18 winner Myki Meeks,” according to a statement released by Capital Pride.
“In a moment when LGBTQ+ people are being challenged across the country, the Capital Pride Concert is a space where our community is fully seen and heard,” Ryan Bos, the Capital Pride Alliance CEO and president, said in the statement. “Bringing Maren Morris to the stage reflects this year’s theme: Exist, Resist, Have the Audacity,” Bos said.
The statement notes that the concert takes place as part of the annual D.C. Pride Festival, which is open to the public free of charge, with tickets available for purchase for specific areas listed as the Capital Stage Pit Zone and the VIP Concert Zone.
It says the festival takes place from 12 –10 p.m. and points out that in addition to the music performed by multiple other performers on several stages, festival attendees “can explore hundreds of exhibitors, community organizations, and artisans, along with multiple food courts and beverage gardens throughout the festival footprint.”
Information on the Capital Pride Alliance website shows that the festival takes place one day after the annual Capital Pride Parade, scheduled for June 20 and which is expected to travel from 14th and T Streets, N.W., to Pennsylvania Ave., N.W., where it is expected to end at 9th Street.
The statement adds that following the stage performances during the June 21 festival, which are expected to conclude around 8 p.m., “the celebration will continue with the Capitol Sunset Dance Party, closing out the evening against the backdrop of the U.S. Capitol.”
The online publication Today, which is part of the NBC “Today” television show, reported that Morris came out as bisexual in a 2024 during Pride. It reports Morris “shared several images of herself holding a Pride flag to mark the occasion, writing, ‘Happy to be the B in LGBTQ+’”
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