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
Joseline Peña-Melnyk elected Md. House speaker
Family immigrated to New York City from the Dominican Republic
By PAMELA WOOD | Moments after being elected speaker of the Maryland House of Delegates Tuesday, state Del. Joseline Peña-Melnyk stood before the chamber and contemplated her unlikely journey to that moment.
Born in the Dominican Republic, the Peña family lived in a small wooden house with a leaky tin roof and no indoor plumbing. Some days, she said, there was no food to eat.
When she was 8 years old, the family immigrated to New York City, where Peña-Melnyk was dubbed “abogadito” or “little lawyer” for helping her mother and others by translating at social services offices.
The rest of this article can be read on the Baltimore Banner’s website.
District of Columbia
D.C. students need academic support, diverse connections for economic mobility
Region offers array of resources for families in need of assistance
Education is the blueprint of good economic mobility.
But when students aren’t set up with the proper resources to secure a quality education, it’s often low-income families that suffer the most, For Love of Children (FLOC) Executive Director LaToya Clark said. Children from low-income families on average grow up to earn $25,600 annually, according to Opportunity Insights.
D.C. families need better economic mobility, and experts say that starts with kids getting an education and breaking generational poverty cycles. Students without a high school diploma earn $738 per week on average, while those who graduated high school earn roughly $930 per week, according to the U.S. Bureau of Labor Statistics. Contrarily, those with bachelor’s degrees earn about $1,543 per week.
Students from low-income backgrounds have fewer financial advantages on their paths to securing an education, and hardships faced by public schools make it difficult for them to catch up, Clark said.
From local financial and educational assistance programs to strengthening diversity among educators, here are a few ways researchers and advocates are fighting for better economic mobility in D.C. schools.
Student assistance programs
For many students, falling behind academically is because of circumstances outside of their control, Clark said.
She said teacher shortages, large classrooms and scarce funding can lead to an educational environment not fully equipped to set students on the right path. A one-dimensional education can then hinder future professional opportunities and give students limited economic mobility.
That’s where local organizations like FLOC come in –– to fill in the academic and social gaps often left open by schools.
Clark said FLOC has multiple services that give underserved students a more individualized academic experience. For the Neighborhood Tutoring Program, students are assessed at the grade level at which they’re performing, not what grade they are in. They’re then matched with a volunteer –– ranging from college students to retirees –– who follows a curriculum that matches the student’s performance level.
There’s also the Pathways Forward Program, an afterschool opportunity for D.C. youth in 7th to 12th grades designed to increase high school graduation rates. The program supports those at risk of academic failure to find a successful way forward, and those in 10th to 12th grades to prepare for graduation or transition to postsecondary programs. Both Neighborhood Tutoring and Pathways Forward are free.
“Everything we offer is designed to close achievement gaps, help our students boost their confidence and ensure young people have the skills and support that they need to succeed in schools and beyond,” Clark said.
And that design is working for students. Clark recalled a young girl who was the oldest of six who felt a need to help her mom take care of her siblings. She was falling behind in school until she found FLOC. The girl credited her ability to go to college and find a professional job to FLOC’s individualized and accessible approach to education.
FLOC is a reliable resource for D.C. youth to get academic help, but there are numerous other organizations working to close educational gaps and improve the future economic mobility of students.
Minds Matter D.C. helps underserved students find accessible pathways to prepare for and succeed in college. The organization offers mentoring, SAT prep, access to summer enrichment programs and guidance through the college application and financial aid process.
The work Minds Matter does addresses a disproportionate statistic: While roughly 89% of students from “well-off” families attend college, only 51% of students from low-income families do so, according to a report published by Brookings. Minds Matter reported that 100% of its students attended a four-year college or university.
The D.C. Schools Project, a program of the Center for Social Justice, offers academic help and English-language tutoring for low-income and immigrant families. Each semester, roughly 60 tutors assist about 100 students, their families, and other D.C. immigrants.
D.C. CAP Scholars has a mission to connect youth with financial and academic opportunities that will help them succeed in college. Registration is now open for the organization’s Ward 7 & 8 scholarship, a $12,000 annual scholarship for students who attended high school in those D.C. wards. Those areas encompass communities such as Congress Heights, Deanwood and Anacostia, which are some of the city’s poorest areas.
RISE offers tutoring and college mentoring to underserved populations. Its primary focus is on opportunity academies, including the three in D.C.: Ballou STAY, Luke C. Moore and Garnet-Patterson STAY. These academies are “second chance” schools for students who didn’t complete high school on a traditional timeline.
RISE Executive Director Ricardo Cooper said the organization offers real-time tutors for students in these academies through its Keep Up Tutoring program. RISE also provides summer literacy “bootcamps” and college prep for underserved students.
As a native Washingtonian, Cooper said he wishes opportunities like RISE were available to him as a kid. That’s why it’s so special for him to lead the organization and help D.C. youth rise above the academic and economic barriers he used to face.
“We know that going to college and getting a degree makes you more money,” Cooper said. “Being able to have these programs to support youth in school, to make sure that they feel confident once they graduate high school, to go to college, to feel confident in completing their coursework and just understanding the material is important to raise that poverty line.”
While these programs are crucial to many students’ success, Matthew Shirrell, associate professor of educational leadership at George Washington University, said there are many fundamental solutions to supporting kids that schools should recognize.
Diverse learning opportunities
Shirrell’s research has identified a key link to the positive relationships between teachers and students: diversity.
“Having a more diverse teaching workforce would certainly benefit all students, because it’s like their teachers having access to a library with a whole bunch of different perspectives,” Shirrell said.
He said teachers have a continuously growing list of responsibilities not just academically, but in dealing with social and emotional issues that students bring to school. By having a diverse team of educators in each school, teachers are better equipped to connect with students to turn potential barriers into new pathways.
But achieving this is about more than championing diversity –– it’s a way for students to secure better futures and stay out of the criminal justice system, Shirrell said.
Shirrell pointed to the idea of “exclusionary discipline.” In his research, Shirrell found that Black and LatinX students were significantly less likely to be suspended from school when they had teachers who shared their racial or ethnic background.
Teachers of different backgrounds than their students tend to rely on harsh disciplinary action, when in reality the situation could come down to cultural misunderstandings or misconceptions, Shirrell said.
In the long run, this disciplinary bias can disproportionately impact underserved communities. Shirrell said relentless discipline can lead to the students making poor decisions outside of school and potentially ending up in the criminal justice system.
At such a formative age, students need the support, understanding and guidance that only a diverse population of educators can bring.
“You really can’t get that from a book,” Shirrell said. “The best way to learn that is from working alongside somebody who you know is doing things differently than you. There’s tremendous value to having a diverse workforce, whether that be racial, linguistic or economic.”
Securing an education from open-minded teachers is especially important in underserved pockets of D.C., such as Wards 7 and 8. D.C. youth can experience completely different lives and opportunities just by living around the block. Diverse educators can help fill social gaps, but having students from different economic backgrounds share a classroom pushes them to see different points of views and develop their critical thinking skills, Shirrell said.
Luckily, that sentiment rings true in D.C., a city with high social capital –– or the likelihood of low-income people and high-income people becoming friends or crossing paths. About 50% of the friends of low-income people have high incomes, and low-income people are only 4.7% less likely to friend high-income people they meet, according to Opportunity Insights.
Though there’s never one simple solution in growing economic mobility for students and their families, Cooper, the RISE executive director, said having educators who embody multiple perspectives –– as well as ensure students are aware of the financial and academic support programs available to them –– are strong ways to set a child on a brighter financial and professional path.
“There are a lot of factors that also go along with [improving economic mobility], but chances are better once students feel confident in who they are, confident in what they can do and go to college and excel,” Cooper said.
This article is part of a national initiative exploring how geography, policy, and local conditions influence access to opportunity. Find more stories at economicopportunitylab.com.
Virginia
DOJ seeks to join lawsuit against Loudoun County over trans student in locker room
Three male high school students suspended after complaining about classmate
The Justice Department has asked to join a federal lawsuit against Loudoun County Public Schools over the way it handled the case of three male high school students who complained about a transgender student in a boys’ locker room.
The Washington Blade earlier this year reported Loudoun County public schools suspended the three boys and launched a Title IX investigation into whether they sexually harassed the student after they said they felt uncomfortable with their classmate in the locker room at Stone Bridge High School in Ashburn.
The parents of two of the boys filed a lawsuit against Loudoun County public schools in U.S. District Court for the Eastern District of Virginia in Alexandria. The Richmond-based Founding Freedoms Law Center and America First Legal, which White House deputy chief of staff Stephen Miller co-founded, represent them.
The Justice Department in a Dec. 8 press release announced that “it filed legal action against the Loudoun County (Va.) School Board (Loudoun County) for its denial of equal protection based on religion.”
“The suit alleges that Loudoun County applied Policy 8040, which requires students and faculty to accept and promote gender ideology, to two Christian, male students in violation of the Equal Protection Clause of the 14th Amendment to the U.S. Constitution,” reads the press release.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division in the press release said “students do not shed their First Amendment rights at the schoolhouse gate.”
“Loudoun County’s decision to advance and promote gender ideology tramples on the rights of religious students who cannot embrace ideas that deny biological reality,” said Dhillon.
Outgoing Virginia Gov. Glenn Youngkin and outgoing Virginia Attorney General Jason Miyares in May announced an investigation into the case.
The Virginia Department of Education in 2023 announced the new guidelines for trans and nonbinary students for which Youngkin asked. Equality Virginia and other advocacy groups claim they, among other things, forcibly out trans and nonbinary students.
The U.S. Department of Education’s Office of Civil Rights in February launched an investigation into whether Loudoun County and four other Northern Virginia school districts’ policies in support of trans and nonbinary students violate Title IX and President Donald Trump’s executive order that prohibits federally funded educational institutions from promoting “gender ideology.”
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