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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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Local

Comings & Goings

Gill named development manager at HIPS

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Warren Gill

The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected]

The Comings & Goings column also invites LGBTQ+ college students to share their successes with us. If you have been elected to a student government position, gotten an exciting internship, or are graduating and beginning your career with a great job, let us know so we can share your success. 

Congratulations to R. Warren Gill III, M.Div., M.A. on being appointed as the development manager at HIPS. Upon his appointment, Gill said, “For as long as I’ve lived in Washington, D.C., I’ve followed and admired the life-saving work HIPS does in our communities. I’m proud to join the staff and help strengthen the financial support that sustains this work.”

Gill will lead fundraising strategy, donor engagement, and institutional partnerships. HIPS promotes the health, rights, and dignity of individuals and communities impacted by sexual exchange and/or drug use due to choice, coercion, or circumstance. HIPS provides compassionate harm reduction services, advocacy, and community engagement that is respectful, non-judgmental, and affirms and honors individual power and agency.  

Gill has built a career at the intersection of progressive politics, advocacy, and nonprofit leadership. Previously he served as director of communications at AIDS United, supporting national efforts to end the HIV epidemic. Prior to that he had roles including; being press secretary for Sen. Bernie Sanders during the 2016 presidential primary, and working with the General Board of Church and Society, the United Methodist Church, the denomination’s social justice and advocacy arm.

Gill earned his bachelor’s degree in philosophy and religious studies, Jewish Studies, Stockton University; his master’s degree in political communication from American University, where his graduate research focused on values-based messaging and cognitive linguistics; and his master of Divinity degree from the Pacific School of Religion.  

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District of Columbia

Judge denies D.C. request to dismiss gay police captain’s anti-bias lawsuit

MPD accused of illegally demoting officer for taking family leave to care for newborn child

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D.C. Police Captain Paul Hrebenak (right) embraces his husband, James Frasere, and the couple's son. (Photo courtesy of Hrebenak)

A U.S. District Court judge on Jan. 21 denied a request by attorneys representing the D.C. Metropolitan Police Department to dismiss a lawsuit filed by a gay captain accusing police officials of illegally demoting him for taking parental leave to join his husband in caring for their newborn son.

The lawsuit filed by Capt. Paul Hrebenak charges that police officials violated the U.S. Family and Medical Leave Act, a similar D.C. family leave law, and the Constitution’s Equal Protection Clause by refusing to allow him to return to his position as director of the department’s School Safety Division upon his return from parental leave.  

It says police officials transferred Hrebenak to another police division against his wishes, which was a far less desirable job and was the equivalent of a demotion, even though it had the same pay grade as his earlier job.

In response to a motion filed by attorneys with the Office of the D.C. Attorney General, which represents and defends D.C. government agencies against lawsuits, Judge Randolph D. Moss agreed to dismiss seven of the lawsuit’s 14 counts or claims but left in place six counts.

Scott Lempert, the attorney representing Hrebenak, said he and Hrebenak agreed to drop one of the 14 counts prior to the Jan. 21 court hearing.

“He did not dismiss the essential claims in this case,” Lempert told the Washington Blade. “So, we won is the short answer. We defeated the motion to dismiss the case.”  

Gabriel Shoglow, a spokesperson for the Office of the D.C. Attorney General, said the office has a policy of not commenting on pending litigation and it would not comment on the judge’s ruling upholding six of the lawsuit’s initial 14 counts.

In issuing his ruling from the bench, Moss gave Lempert the option of filing an amended complaint by March 6 to seek the reinstatement of the counts he dismissed. He gave attorneys for the D.C. attorney general’s office a deadline of March 20 to file a response to an amended complaint.

Lempert told the Blade he and Hrebenak have yet to decide whether to file an amended complaint or whether to ask the judge to move the case ahead to a jury trial, which they initially requested.

In its 26-page motion calling for dismissal of the case, filed on May 30, 2025, D.C. Office of the Attorney General attorneys argue that the police department has legal authority to transfer its officers, including captains, to a different job. It says that Hrebenak’s transfer to a position of watch commander at the department’s First District was fully equivalent in status to his job as director of the School Safety Division.

“The Watch Commander position is not alleged to have changed plaintiff’s rank of captain or his benefits or pay, and thus plaintiff has not plausibly alleged that he was put in a non-equivalent position,” the motion to dismiss states.

“Thus, his reassignment is not a demotion,” it says. “And the fact that his shift changed does not mean that the position is not equivalent to his prior position. The law does not require that every single aspect of the positions be the same.”

Hrebenak’s lawsuit states that “straight” police officers have routinely taken similar family and parental leave to care for a newborn child and have not been transferred to a different job. According to the lawsuit, the School Safety Division assignment allowed him to work a day shift, a needed shift for his recognized disability of Crohn’s Disease, which the lawsuit says is exacerbated by working late hours at night.

The lawsuit points out that Hrebenak disclosed he had Crohn’s Disease at the time he applied for his police job, and it was determined he could carry out his duties as an officer despite this ailment, which was listed as a disability.

Among other things, the lawsuit notes that Hrebenak had a designated reserved parking space for his earlier job and lost the parking space for the job to which he was transferred.

“Plaintiff’s removal as director at MPD’s School Safety Division was a targeted, premeditated punishment for his taking statutorily protected leave as a gay man,” the lawsuit states. “There was no operational need by MPD to remove plaintiff as director of MPD’s School Safety Division, a position in which plaintiff very successfully served for years,” it says.

 In another action to strengthen Hrebenak’s opposition to the city’s motion to dismiss the case, Lempert filed with the court on Jan. 15 a “Notice of Supplemental Authority” that included two controversial reports that Lempert said showed that former D.C. Police Chief Pamela Smith put in place a policy of involuntary police transfers “to effectively demote and end careers of personnel who had displeased Chief Smith and or others in MPD leadership.”

One of the reports was prepared by the Republican members of the House Oversight and Government Reform Committee and the other was prepared by the office of Jeanine Pirro, the U.S. attorney for D.C. appointed by President Donald Trump.

Both reports allege that Smith, who resigned from her position as chief effective Dec. 31, pressured police officials to change crime reporting data to make it appear that the number of violent crimes was significantly lower than it actually was by threatening to transfer them to undesirable positions in the department. Smith has denied those claims.

“These findings support plaintiff’s arguments that it was the policy or custom of MPD to inflect involuntary transfers on MPD personnel as retaliation for doing or saying something  in which leadership disapproved,” Lempert says in his court filing submitting the two reports.

“As shown, many officers suffered under this pervasive custom, including Capt. Hrebenak,” he stated. “Accordingly, by definition, transferred positions were not equivalent to officers’ previous positions,” he added.  

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Virginia

LGBTQ rights at forefront of 2026 legislative session in Va.

Repeal of state’s marriage amendment a top priority

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Virginia Capitol (Washington Blade photo by Michael Key)

With 2026 ramping up, LGBTQ rights are at the forefront of Virginia politics. 

The repeal of Virginia’s constitutional amendment that defines marriage as between a man and a woman is a top legislative priority for activists and advocacy groups.

The Virginia Senate on Jan. 17 by a 26-13 vote margin approved outgoing state Sen. Adam Ebbin (D-Alexandria)’s resolution that would repeal the Marshall-Newman Amendment. The Virginia House of Delegates earlier this month passed it.

Two successive legislatures must approve the resolution before it can go to the ballot.

The resolution passed in 2025. Voters are expected to consider repealing the amendment on Nov. 3.

The Virginia General Assembly opened with an introduction of a two-year budget — Virginia’s budget runs biannually.

In 2024 some funding was allocated to LGBTQ causes, and others were passed over. This year’s proposed budget leaves room for funding for a host of LGBTQ opportunities. One specific priority that Equality Virginia is promoting would ensure the state budget expands healthcare for LGBTQ individuals and extending gender affirming care. 

Equality Virginia Communications Director Reed Williams told the Washington Blade the organization is also focused on passing three main budget amendments, and ensuring “LGBTQ+ students and their teachers have resources to navigate and address mental health challenges in K-12 schools.”

Along with ensuring school training, the organization wants funding in hopes of “​​establishing enhanced competency training for Virginia’s 988 Lifeline counselors and support staff to provide affirming care for LGBTQ+ youth.” This comes after the Trump-Vance administration shut down the specific hotline for LGBTQ young people that callers could previously reach if they called 988.

On a federal level, protections and health care access for LGBTQ people has taken a hit, as the Trump-Vance administration has continued to issue executive orders affecting the health care system. LGBTQ people no longer have federal legal health care protections, so local and state politics has become even more important for LGBTQ rights groups.

Equality Virginia has urged its supporters to call their local senators and stress the importance of voting to expand health care protections for LGBTQ people. The organization also plans to hold information sessions and a lobby day on Feb. 2.

Equality Virginia is tracking bills on its website.

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