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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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District of Columbia

Activist hosts Diwali celebration in D.C.

More than 120 people attended Joshua Patel’s party on Nov. 9.

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Joshua Patel hosted a Diwali celebration at the Speakeasy at Capo Deli on Florida Avenue, N.W., on Nov. 9, 2025. (Photo courtesy of Josh Patel)

LGBTQ activist and businessman Joshua Patel hosted a community Diwali party on Nov. 9.

Patel organized the event as a community gathering amid the Trump-Vance administration’s policies against LGBTQ inclusion and DEI. The event, held at the Capo Deli speakeasy, drew more than 120 attendees, including local business leaders.

Patel is a franchise owner of ProMD Health, recently awarded as the best med spa by the Washington Blade. He is also a major gift officer at Lambda Legal.

Patel noted that upon moving from New York to Washington in 2022, he desired a chance for community-based Diwali celebrations. He stated that the city offered minimal chances for gatherings beyond religious institutions, unless one was invited to the White House’s Diwali party. 

“With our current administration, that gathering too has ended — where we cannot expect more than Kash Patel and President Trump lighting a ‘diya’ candle on Instagram while simultaneously cutting DEIB funding,” Patel said.

In addition to celebrating the festival of lights and good over evil, Patel saw the event as a moment to showcase “rich, vibrant culture” and “express gratitude.”

Patel coined the celebration a “unifier.”

“From a spiritual angle, Shiva was the world’s first transgender God, taking the form of both “male” and “female” incarnations,” Patel said. “The symbolism of our faith and concepts are universal and allows for all to rejoice in the festivities as much or little as they desire.”

Savor Soiree, DMV Mini Snacks and Capo Deli catered the event. DJ Kush spun music and Elisaz Events decorated the Diwali celebration.

The Diwali party also featured performances by former Miss Maryland Heather Young Schleicher, actor Hariqbal Basi, Patel himself and Salatin Tavakoly and Haseeb Ahsan.

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Maryland

Harford school board appeals state’s book ban decision to circuit court

5-2 ruling in response to ‘Flamer’ directive

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The book “Flamer” is by Mike Curato, who wrote about his experience being bullied as a kid for being gay. (Photo by Kristen Griffith for the Baltimore Banner)

By KRISTEN GRIFFITH | Marking a historic moment in Maryland’s debate over school library censorship, Harford County’s school board voted Thursday to appeal the state’s unprecedented decision overturning its ban of a young adult graphic novel, pushing the dispute into circuit court.

The 5-2 vote followed a recent ruling from the state board overturning Harford’s ban of the book “Flamer.” In a special meeting Thursday afternoon, board members weighed whether to seek reconsideration or take the matter to circuit court — ultimately opting to appeal.

The book “Flamer” is by Mike Curato, who wrote about his experience being bullied as a kid for being gay.

The rest of this article can be found on the Baltimore Banner’s website.

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Maryland

Salisbury, Md. rainbow crosswalk removed on Veterans Day

Mayor’s order denounced by LGBTQ activists as act of bigotry

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Salisbury Mayor Randy Taylor ordered the removal of the rainbow crosswalk. (Screen capture via PAC 14/YouTube)

Under the directive of its mayor and over strong objections from LGBTQ rights advocates and their supporters, the city of Salisbury, Md. on Nov. 11 removed a rainbow crosswalk from a prominent intersection across from the mayor’s office and the city’s public library. 

Salisbury LGBTQ rights advocate Mark DeLancey, who witnessed the crosswalk removal, said instead of painting over it as other cities have done in removing rainbow crosswalks, a powerful grinding machine was used to rip apart the asphalt pavement under the crosswalk in what he believes was an effort by the mayor to “make a point.”

Like officials in other locations that have removed rainbow crosswalks, Salisbury Mayor Randy Taylor said the crosswalk removal was required under U.S. Department of Transportation regulations put in place by the Trump administration that do not allow “political” messages on streets and roadways.

“Since taking office, I’ve been transparent about my concerns regarding the Pride crosswalks installed in Downtown Salisbury,” Taylor said in a statement. “While I have made every effort to respect the decisions of previous administrations and the folks that supported them, it has become clear that a course of correction – as planned – is necessary to align with current Department of Transportation standards for roadway markings,” he said in his Nov. 7 statement that was posted on the city’s Facebook page.

DeLancey is among the activists and local public officials in many cities and states that dispute that the federal Department of Transportation has legal authority to ban the Pride crosswalks. D.C. and the Northern Virginia jurisdictions of Arlington and Alexandria are among the localities that have refused to remove rainbow crosswalks from their streets.

“He decided to take this on himself,” DeLancey said of Taylor’s action. “It’s not a law. It’s not a ruling of any kind. He just said that was something that should happen.”

DeLancey points out that Salisbury became the first jurisdiction in Maryland to install a  rainbow crosswalk on a public street in September 2018.

“This is another blatant attempt by our Republican mayor to remove any references to groups that don’t fit with his agenda,” Salisbury LGBTQ advocate Megan Pomeroy told the local publication Watershed Observer. “The rainbow crosswalk represents acceptance for everyone. It tells them, ‘You matter. You are valued. You are welcome here,’” she was quoted as saying.

The publication Delmarva Now reports that a longtime Salisbury straight ally to the LGBTQ community named K.T. Tuminello staged a one-person protest on Nov. 10 by sitting on the sidewalk next to the rainbow crosswalk holding a sign opposing its removal.

“Tuminello said Nov. 10 he had been at the embattled crosswalk since 12 a.m. that morning, and only three things could make him leave: ‘I get arrested, I have to get into an ambulance because of my medical difficulties, or Randy Taylor says you can keep that one rainbow crosswalk,’” the Delaware Now article states.

DeLancey said he has known Tuminello for many years as an LGBTQ ally and saw him on the night he staged his sit-in at the site of the crosswalk. 

“I actually went to him last night trying to give him some water,” DeLancey told the Washington Blade. “He was on a hunger strike as well. He was there for a total of 40 hours on strike, not eating, no sleeping in the freezing cold” 

Added DeLancey, “He has been supporting our community for decades. And he is a very strong ally, and we love his contribution very much.”

Political observers have pointed out that Salisbury for many years has been a progressive small city surrounded by some of Maryland’s more conservative areas with mostly progressive elected officials.

They point out that Taylor, a Trump supporter, won election as mayor in November 2023 with 36.6 percent of the vote. Two progressive candidates split the vote among themselves, receiving a combined total of 70.8 percent of the vote.  

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