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McDermott introduces pro-gay tax equity bill

Legislation would eliminate tax on employer-provided coverage

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The sponsor of legislation that would ensure tax equity for same-sex couples receiving employer-provided health benefits envisions upcoming tax reform legislation as a potential vehicle for passage.

Rep. Jim McDermott (D-Wash.), the sponsor of the Tax Parity for Health Plan Beneficiaries Act, said in an interview with the Washington Blade that he sees an opportunity to move his legislation forward when Congress takes up planned legislation for tax reform.

“It will be easy to put it in some tax bill along the way,” McDermott said. “It won’t be a standalone bill.”

Rep. Dave Camp (R-Mich.), chair of the House Ways & Means Committee, has said he wants to address tax reform during this Congress and has held hearings on the issue, although the time for when the panel will take up the larger bill is still unknown.

A McDermott staffer, who spoke on condition of anonymity, said his boss could amend the larger tax reform legislation with the Tax Parity for Health Plan Beneficiaries Act when it comes before the committee, but said it “depends on the process the Republicans take.”

McDermott’s legislation rectifies an inequity faced by LGBT couples under current law, which exempts employer-provided health coverage for opposite-sex spouses from an employee’s gross income, but makes domestic partner benefits and coverage for same-sex spouses subject to taxation.

Consequently, employees seeking to cover their same-sex partners or spouses pay more income and payroll tax than a straight employee with an opposite-sex spouse.

This inequity also burdens employers who want to extend their health benefits to the partners of their gay employees. Companies that offer such benefits have the administrative burden of calculating taxes separately and have to pay additional payroll taxes.

McDermott said he introduced the legislation, which has been languishing in Congress since 2001, as a “matter of basic fairness” for same-sex couples who are receiving employer-provided health benefits.

“If there is a couple who are in some kind of union, recognized in one way or another, they have to pay taxes on it,” McDermott said. “That’s not fair. Why should a gay couple, or any kind of couples that are living together, using one health insurance plan have to pay taxes whereas if you’re married and not a same-sex couple, you don’t have to pay taxes.”

Joe Solmonese, president of the Human Rights Campaign, said in a statement that the legislation will eliminate an additional barrier that same-sex couples face in securing health insurance coverage.

“This legislation would remove that added tax burden, which can be as much as $2,200 per year, as well as the penalty imposed on fair-minded employers who provide equal benefits to their LGBT employees,” Solmonese said.

In the last Congress, the legislation was included as a provision in a House version of health care reform legislation. However, the language never made it as part of the final bill because the Senate version of health care reform was the bill that made its way to President Obama’s desk.

Despite the failure last week, McDermott said the prospects of passing tax reform legislation this Congress are even greater than last year — even with Republicans in control of the House — because of the plan for Congress to address tax reform legislation by the end of next year.

“We’ve got some Republican sponsors this time,” McDermott said. “As a matter of fact, there are a lot more Republicans who have heard from people in their district who are saying, ‘Just change the tax code and make it easier for us.'”

As of this week, McDermott’s legislation has three co-sponsors: Reps. Richard Hanna (R-N.Y.) , Earl Blumenauer (D-Ore.) and Nan Hayworth (R-N.Y.). In the Senate, Chuck Schumer (D-N.Y.) is set to introduce companion legislation either this week or the next. Sen. Susan Collins (R-Maine) will be an original co-sponsor.

R. Clarke Cooper, executive director of the Log Cabin Republicans, praised the Republican co-sponsors for joining on in early support of the legislation.

“We need common sense, pro-growth policies to give businesses and entrepreneurs renewed confidence in our economy and to remove Washington as the roadblock to job creation,” Cooper said. “Under current policy, the federal tax code is punishing the business community for providing their gay and lesbian employees with benefits. Congress can help private sector growth by eliminating the punitive domestic partner tax.”

An estimated 60 percent of Fortune 500 companies offer health insurance benefits to the same-sex partners of the employees. On May 31, 77 major American businesses — including Alaska Airlines, Microsoft and Boeing — sent a letter to McDermott in support of the legislation.

“Companies like ours in increasing numbers have made the business decision to provide health benefits to such beneficiaries, such as the domestic partners, adult children, certain grandchildren, etc. of our employees,” the letter states. “This coverage and coverage of non-spouse, non-dependent beneficiaries helps corporations attract and retain qualified employees and provides employees with health security on an equitable basis.”

The legislation falls under the jurisdiction of the Republican-controlled House Ways & Means Committee, which most observers expect to be unfriendly to pro-LGBT legislation. Camp’s office didn’t immediately respond to a request for comment on the bill.

However, one of the signers of the legislation is the Dow Chemical Co., which is headquartered in Midland, Mich., and in Camp’s district. Supporters of the legislation are hoping Dow’s endorsement will prompt Camp to support it.

McDermott said he hasn’t had discussions with Camp about his bill yet, but plans to do so when the congressional recess ends at the start of next week.

The administration has also yet to voice support one way or the other for the legislation. Shin Inouye, a White House spokesperson, told the Blade the administration hasn’t yet reviewed the measure.

“While we have not reviewed this specific legislation, the president generally supports efforts to give parity and equal protection to same-sex couples,” Inouye said.

McDermott said he doesn’t see any interim action that President Obama could take to address the situation and said passing legislation is the only to end the tax inequity faced by LGBT couples.

“I think it’s going to require a law change,” McDermott said. “If you keep after something that’s right, then ultimately the stars line up and it passes. That’s what’s going to happen here.”

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Federal Government

House Republicans push nationwide ‘Don’t Say Gay’ bill

Measures would restrict federal funding for LGBTQ-affirming schools

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(Washington Blade photo by Michael Key)

Republicans have been gaining ground in reshaping education policy to be less inclusive toward LGBTQ students at the state level, and now they are turning their focus to Capitol Hill.

Some GOP lawmakers are pushing for a nationwide “Don’t Say Gay” bill, doubling down on their commitment to being the party of “traditional family values” by excluding anyone who does not identify with their sex at birth.

The largest anti-LGBTQ education legislation to reach the House chamber is House Bill 2616 — the Parental Rights Over the Education and Care of Their Kids Act, or the PROTECT Kids Act. The PROTECT Kids Act, proposed by U.S. Rep. Tim Walberg (R-Mich.), and co-sponsored by U.S. Reps. Burgess Owens (R-Utah), Mary Miller (R-Ill.), Robert Onder (R-Mo.), and Kevin Kiley (R-Calif.), would require any public elementary and middle schools that receive federal funding to require parental consent to change a child’s gender expression in school.

The bill, which was discussed during Tuesday’s House Rules Committee hearing, would specifically require any schools that get federal money from the Elementary and Secondary Education Act of 1965 — which was created to minimize financial discrepancies in education for low-income students — to get parental approval before identifying any child’s gender identity as anything other than what was provided to the school initially. This includes getting approval before allowing children to use their preferred locker room or bathroom.

It reads that any school receiving this funding “shall obtain parental consent before changing a covered student’s (1) gender markers, pronouns, or preferred name on any school form; or (2) sex-based accommodations, including locker rooms or bathrooms.”

LGBTQ rights advocates have criticized both national and state efforts to require parental permission to use a child’s preferred gender identity, as it raises issues of at-home safety — especially if the home is not LGBTQ-affirming — and could lead to the outing of transgender or gender-curious students.

A follow-up bill, HB 2617, proposed by Owens, one of the bill’s co-sponsors, prevents the use of federal funding to “advance concepts related to gender ideology,” using the definition from President Donald Trump’s 2025 Executive Order 14168, making that an enshrined definition in law of sex rather than just by executive order. There is also a bill making its way through the senate with the same text— Senate Bill 2251.

Advocates have also criticized this follow-up legislation, as it would restrict school staff — including teachers and counselors — from acknowledging trans students’ identities or providing any support. They have said that this kind of isolation can worsen mental health outcomes for LGBTQ youth and allows for education to be politicized rather than being based in reality.

David Stacy, the Human Rights Campaign’s vice president of government affairs, called this legislation out for using LGBTQ children as political pawns in an ideology fight — one that could greatly harm the safety of these children if passed.

“Trans kids are not a political agenda — they are students who deserve safety and affirmation at school like anyone else,” Stacy said in a statement. “Despite the many pressing issues facing our nation, House Republicans continue their bizarre obsession with trans people. H.R. 2616 does not protect children. It targets them. This bill is cruel, and we’re prepared to fight it.”

This is similar to Florida House Bills 1557 and 1069, referred to as the “Don’t Say Gay” bill and “Don’t Say They” bill, respectively, restricting classroom discussions on sexual orientation and gender identity, prohibiting the use of pronouns consistent with one’s gender identity, expanding book banning procedures, and censoring health curriculum.

The American Civil Liberties Union is tracking 233 bills related to restricting student and educator rights in the U.S.

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National

BREAKING NEWS: Shots fired at the White House Correspondents’ Dinner

Shooter reportedly opened fire inside hotel

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(Washington Blade photo by Joe Reberkenny)

Four loud bangs were heard in the International Ballroom of the Washington Hilton during the annual White House Correspondents’ Dinner on Saturday.

According to the Associated Press, a shooter opened fire inside the hotel outside the ballroom.

Attendees could hear four loud bangs as people started to duck and take cover. During the chaos sounds of salad and glasses were dropped as hotel employees, and guests ducked for cover.

The head table — which included President Donald Trump, Vice President JD Vance, first lady Melania Trump, and White House Correspondents Association President Weijia Jiang — were rushed off stage.

“The U.S. Secret Service, in coordination with the Metropolitan Police Department, is investigating a shooting incident near the main magnetometer screening area at the White House Correspondents’ Dinner,” the U.S. Secret Service said in a statement. “The president and the First Lady are safe along all protects. One individual is in custody. The condition of those involved is not yet known, and law enforcement is actively assessing the situation.”

Trump held a press conference at the White House after he left the hotel.

“A man charged a security checkpoint armed with multiple weapons and he was taken down by some very brave members of Secret Service,” said Trump.

Trump said the shooter is from California. He also said an officer was shot, but said his bullet proof vest “saved” him.

D.C. Mayor Muriel Bowser, interim D.C. police chief Jeffrey Carroll, U.S. Attorney for D.C. Jeanine Pirro, and other officials held their own press conference at the hotel.

Carroll said the gunman who has been identified as Cole Tomas Allen was armed with a shotgun, handgun, and “multiple” knives when he charged a Secret Service checkpoint in a hotel lobby. Carroll also told reporters that law enforcement “exchanged gunfire with that individual.”

Both he and Bowser said the gunman appeared to act alone.

“We are so very thankful to members of law enforcement who did their jobs tonight and made sure all guests were safe,” said Bowser. “Nobody else was involved.”

The Washington Blade will update this story as details become more available.

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State Department

State Department implements anti-trans bathroom policy

Memo notes directive corresponds with White House executive order

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(Photo courtesy of the Library of Congress)

The State Department on April 20 announced employees cannot use bathrooms that correspond with their gender identity.

The Daily Signal, a conservative news website, reported the State Department announced the new policy in a memo titled “Updates Regarding Biological Sex and Intimate Spaces, Including Restrooms.”

The State Department has not responded to the Washington Blade’s request for comment on the directive.

“The administration affirms that there are two sexes — male and female — and that federal facilities should operate on this objective and longstanding basis to ensure consistency, privacy, and safety in shared spaces,” State Department spokesperson Tommy Piggot told the Daily Signal. “In line with President Trump’s executive order this provides clear, uniform guidance to the department by grounding policy in biological sex as determined at birth.”

President Donald Trump shortly after he took office in January 2025 issued an executive order that directed the federal government to only recognize two genders: male and female. The sweeping directive also ordered federal government agencies to “effectuate this policy by taking appropriate action to ensure that intimate spaces designated for women, girls, or females (or for men, boys, or males) are designated by sex and not identity.”

The Daily Signal notes the new State Department policy “does not prohibit single-occupancy restrooms.”

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