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.
District of Columbia
Curve magazine honors Washington Blade publisher
Lynne Brown named to 2026 Power List
Washington Blade Publisher Lynne Brown has been named to the 2026 Curve Power List celebrating LGBTQ+ women and nonbinary individuals in North America who are blazing trails in their chosen fields.
“From sports and entertainment icons to corporate leaders and lawmakers, these individuals are breaking barriers, challenging norms, and shaping the future,” Curve Foundation/Curve magazine said in announcing this year’s list, which includes ABC newscaster Robin Roberts, comedian/actress Hannah Einbinder, and singer/actress Renee Rapp, among others.
Brown has worked for the Washington Blade for nearly 40 years. She was named publisher in 2007 before becoming a co-owner in 2010.
“I am honored to be recognized by Curve magazine during Lesbian Visibility Week,” Brown said. “Receiving this Curve honor is twofold. I was an early subscriber to Curve. I enjoy the product and know its history. Its journalism, layout and humorous features have inspired me.
“As an owner/publisher, receiving recognition from a similar source acknowledges my work and efforts, with a sincerity I truly appreciate. Franco Stevens, the publisher of Curve, is a business person of duration, experience, and purpose. The fact that they are in the media business, and honoring me and my publication makes it a tiny bit sweeter.”
Nominations for the Curve Power List come from the community: peers, mentors, fans, and employers.
Curve explained the significance of the list in its announcement: “An annual, publicly nominated list of impactful LGBTQ+ women and nonbinary changemakers is crucial in current times to counter discrimination, legislative rollbacks, hostility, and the invisibility of queer women within mainstream and marginal spaces and endeavors. Such a list also fosters encouragement and solidarity, and elevates voices and achievements—from high-profile roles to under appreciated areas of life.”
Rehoboth Beach
Auction of Rehoboth’s Blue Moon canceled
Details on sale of iconic bar, restaurant not disclosed
The Blue Moon in Rehoboth Beach, Del., has been an iconic presence in the local LGBTQ community for four decades but its status remains murky after a sheriff’s auction of the property was abruptly called off on Tuesday.
The property was listed for sale in December. At that time, owner Tim Ragan told the Blade that he is committed to preserving its legacy as a gay-friendly space.
“We had no idea the interest this would create,” Ragan said in December. “I guess I was a little naive about that.”
Ragan explained that he and longtime partner Randy Haney were separating the real estate from the business. The two buildings associated with the sale were 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 were listed for $4.5 million.
The bar and restaurant business is being sold separately; the price was not publicly disclosed.
But then, earlier this year, the Blue Moon real estate listing turned up on the Sussex County Sheriff’s Office auction site. The auction was slated for Tuesday, April 21 but hours before the sale, the listing changed to “active under contract” indicating that a buyer has been found but the sale is not yet final. As of Wednesday morning, the listing has been removed from the sheriff’s auction site.
Ragan didn’t respond to Blade inquiries about the auction. Back in December, he told the Blade, “It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” noting that he turns 70 this year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.”
The identity of the buyer was not disclosed, nor was the sale price.
Delaware
Delaware school district remains supportive after Trump attacks on trans students
Cape Henlopen has gender identity nondiscrimination policy
The Cape Henlopen School District in Delaware, one of five school districts in several states where the U.S. Department of Education earlier this month rescinded agreements protecting the rights of transgender students, says it will continue to provide a “safe and supportive learning environment” for all students.
In response to a request for comment, a spokesperson for the Cape Henlopen district sent the Washington Blade a short statement on its response to the federal Education Department’s action under orders from the Trump administration that ended what were called school district “resolution agreements” put in place under the administration of President Joe Biden.
Among other things, the federally initiated agreements required schools to train faculty on responding to a student’s preferred name and pronouns and to implement policies that allow transgender students to use bathrooms and locker rooms that align with their gender identity.
“The Cape Henlopen School District has received correspondence from the U.S. Department of Education’s Office of Civil Rights regarding the resolution agreement entered in March 2024,” the Cape Henlopen School District’s statement says. “As always, we are committed to providing a safe and supportive learning environment where all students can succeed,” it says.
“We will continue to work collaboratively to ensure our practices and programs support the well-being, growth, and achievement of every student in our District,” the statement concludes.
Although it did not respond specifically to the Trump-initiated action ending federal protections for trans students, a statement on the Cape Henlopen School District’s website says the district has a policy of non-discrimination based on a wide range of categories, including race, religion, creed, gender, and “sexual orientation or gender identity.”
The Trump administration’s latest action does not take away nondiscrimination policies put in place by school districts on their own.
The Cape Henlopen district is in Sussex County, a short distance from Rehoboth Beach, a Delaware resort town with many LGBTQ residents and summer visitors.
The other school districts for which the U.S. education department ended the trans nondiscrimination agreements include the Delaware Valley School District in Pennsylvania, Sacramento City Unified School District in California, Fife School District in Washington State, and La Mesa Spring Valley School District also in California.
Kimberly Richey, the Department of Education’s Assistant Secretary for Civil Rights, said in a statement that the decision to terminate the school agreements highlighted the Trump administration’s efforts to prevent trans students from participating in girls’ and women’s sports teams and accessing shared locker rooms.
“Today, the Trump administration is removing the unnecessary and unlawful burdens that prior administrations imposed on schools in its relentless pursuit of a radical transgender agenda,” she said in her statement.
Shiwali Patel, an official with the National Women’s Law Center, said in a statement that the action removing protections for trans students would negatively impact all students.
“There is absolutely no basis for what the Department of Education is doing, and it is unimaginably cruel,” she said. “Parents, teachers, and students need the Department to focus on addressing real harms on campuses instead of rolling back policies that keep all students safe.”
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