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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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National

Supreme Court deals blow to trans student privacy protections

Under this ruling, parents are entitled to be informed about their children’s gender identity at school, regardless of state protections for student privacy.

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Transgender rights activists protest outside the Supreme Court in early 2026. (Washington Blade Photo by Michael Key)

The Supreme Court on Monday blocked a California policy that allowed teachers to withhold information about a student’s gender identity from their parents.

The policy had permitted California students to explore their gender identity at school without that information automatically being disclosed to their parents. Now, educators in the state will be required to inform parents about developments related to a student’s gender identity, depending on how the case proceeds in lower courts.

The case involves two sets of parents — identified in court filings as John and Jane Poe and John and Jane Doe — both of which say their daughters began identifying as boys at school without their knowledge, citing religious objections to gender transitioning.

The Poes say they only learned about their daughter’s gender dysphoria after she attempted suicide in eighth grade and was hospitalized. After treatment for the attempt and after being returned to school the following year, teachers continued using a male name and pronouns despite the parents’ objections, citing California law. The Poes have since placed their daughter in therapy and psychiatric care.

Similarly, the Does say their daughter has intermittently identified as a boy since fifth grade, but while their daughter was in seventh grade, they confronted school administrators over concerns that staff were using a male name and pronouns without informing them. The principal told them state law barred disclosure without the child’s consent.

Both sets of parents filed lawsuits in the U.S. District Court for the Southern District of California challenging the state policy that protects students’ gender identity and limits when schools can disclose that information to parents.

The justices voted along ideological lines, with the court’s six conservative members in the majority and the three liberal justices dissenting.

“We conclude that the parents who seek religious exemptions are likely to succeed on the merits of their Free Exercise Clause claim,” the court said in an unsigned order. “The parents who assert a free exercise claim have sincere religious beliefs about sex and gender, and they feel a religious obligation to raise their children in accordance with those beliefs. California’s policies violate those beliefs.”

In dissent, the three liberal justices argued that the case is still working its way through the lower courts and that there was no need for the high court to intervene at this stage. Justice Elena Kagan wrote, “If nothing else, this Court owes it to a sovereign State to avoid throwing over its policies in a slapdash way, if the Court can provide normal procedures. And throwing over a State’s policy is what the Court does today.”

Conservative Justices Samuel Alito and Clarence Thomas indicated they would have gone further and granted broader relief to the parents and teachers challenging the policy.

The emergency appeal from a group of teachers and parents in California followed a decision from the United States Court of Appeals for the Ninth Circuit that allowed the state’s policy to remain in effect. The appeals court had paused an order from U.S. District Judge Roger Benitez — who was nominated by George W. Bush — that sided with the parents and teachers and put the policy on hold.

The legal challenge was backed by the Thomas More Society, which relied heavily on a decision last year in which the court’s conservative majority sided with a group of religious parents seeking to opt their elementary school children out of engaging with LGBTQ-themed books in the classroom.

California Attorney General Rob Bonta expressed disappointment with the ruling. “We remain committed to ensuring a safe, welcoming school environment for all students while respecting the crucial role parents play in students’ lives,” his office said in a statement.

The decision comes as the Trump administration has taken a hardline approach to transgender rights. During his State of the Union address last week, President Donald Trump referenced Sage Blair, who previously identified as transgender and later detransitioned, describing Blair’s experience transitioning in a public school. According to the president, school employees supported Blair’s chosen gender identity and did not initially inform Blair’s parents.

President Donald Trump acknowledges Sage Blair, pictured second from left, during his speech at the State of the Union on Feb. 24. (Washington Blade photo by Michael Key)

Last year, the court upheld Tennessee’s ban on gender-affirming medical care for transgender minors and has allowed enforcement of a policy barring transgender people from serving in the military to continue during Trump’s second term.

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Comings & Goings

Gil Pontes III named to Financial Advisory Board in Wilton Manors

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Gil Pontes III

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]

Congratulations to Gil Pontes III on his recent appointment to the Financial Advisory Board for the City of Wilton Manors, Fla. Upon being appointed he said, “I’m honored to join the Financial Advisory Board for the City of Wilton Manors at such an important moment for our community. In my role as Executive Director of the NextGen Chamber of Commerce, I spend much of my time focused on economic growth, fiscal sustainability, and the long-term competitiveness of emerging business leaders. I look forward to bringing that perspective to Wilton Manors — helping ensure responsible stewardship of public resources while supporting a vibrant, inclusive local economy.”

Pontes is a nonprofit executive with years of development, operations, budget, management, and strategic planning experience in 501(c)(3), 501(c)(4), and political organizations. Pontes is currently executive director of NextGen, Chamber of Commerce. NextGen Chamber’s mission is to “empower emerging business leaders by generating insights, encouraging engagement, and nurturing leadership development to shape the future economy.” Prior to that he served as managing director of The Nora Project, and director of development also at The Nora Project. He has held a number of other positions including Major Gifts Officer, Thundermist Health Center, and has worked in both real estate and banking including as Business Solutions Adviser, Ironwood Financial. For three years he was a Selectman, Town of Berkley, Mass. In that role, he managed HR and general governance for town government. There were 200+ staff and 6,500 constituents. He balanced a $20,000,000 budget annually, established an Economic Development Committee, and hired the first town administrator.

Pontes earned his bachelor’s degree in political science from the University of Massachusetts, Dartmouth.

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Kansas

ACLU sues Kansas over law invalidating trans residents’ IDs

A new Kansas bill requires transgender residents to have their driver’s licenses reflect their sex assigned at birth, invalidating current licenses.

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Kenda Kirby, transgender, Supreme Court, gay news, Washington Blade
A transgender flag flies in front of the Supreme Court. (Washington Blade file photo by Michael Key)

Transgender people across Kansas received letters in the mail on Wednesday demanding the immediate surrender of their driver’s licenses following passage of one of the harshest transgender bathroom bans in the nation. Now the American Civil Liberties Union is filing a lawsuit to block the ban and protect transgender residents from what advocates describe as “sweeping” and “punitive” consequences.

Independent journalist Erin Reed broke the story Wednesday after lawmakers approved House Substitute for Senate Bill 244. In her reporting, Reed included a photo of the letter sent to transgender Kansans, requiring them to obtain a driver’s license that reflects their sex assigned at birth rather than the gender with which they identify.

According to the reporting, transgender Kansans must surrender their driver’s licenses and that their current credentials — regardless of expiration date — will be considered invalid upon the law’s publication. The move effectively nullifies previously issued identification documents, creating immediate uncertainty for those impacted.

House Substitute for Senate Bill 244 also stipulates that any transgender person caught driving without a valid license could face a class B misdemeanor, punishable by up to six months in jail and a $1,000 fine. That potential penalty adds a criminal dimension to what began as an administrative action. It also compounds the legal risks for transgender Kansans, as the state already requires county jails to house inmates according to sex assigned at birth — a policy that advocates say can place transgender detainees at heightened risk.

Beyond identification issues, SB 244 not only bans transgender people from using restrooms that match their gender identity in government buildings — including libraries, courthouses, state parks, hospitals, and interstate rest stops — with the possibility for criminal penalties, but also allows for what critics have described as a “bathroom bounty hunter” provision. The measure permits anyone who encounters a transgender person in a restroom — including potentially in private businesses — to sue them for large sums of money, dramatically expanding the scope of enforcement beyond government authorities.

The lawsuit challenging SB 244 was filed today in the District Court of Douglas County on behalf of anonymous plaintiffs Daniel Doe and Matthew Moe by the American Civil Liberties Union, the ACLU of Kansas, and Ballard Spahr LLP. The complaint argues that SB 244 violates the Kansas Constitution’s protections for personal autonomy, privacy, equality under the law, due process, and freedom of speech.

Additionally, the American Civil Liberties Union filed a temporary restraining order on behalf of the anonymous plaintiffs, arguing that the order — followed by a temporary injunction — is necessary to prevent the “irreparable harm” that would result from SB 244.

State Rep. Abi Boatman, a Wichita Democrat and the only transgender member of the Kansas Legislature, told the Kansas City Star on Wednesday that “persecution is the point.”

“This legislation is a direct attack on the dignity and humanity of transgender Kansans,” said Monica Bennett, legal director of the ACLU of Kansas. “It undermines our state’s strong constitutional protections against government overreach and persecution.”

“SB 244 is a cruel and craven threat to public safety all in the name of fostering fear, division, and paranoia,” said Harper Seldin, senior staff attorney for the ACLU’s LGBTQ & HIV Rights Project. “The invalidation of state-issued IDs threatens to out transgender people against their will every time they apply for a job, rent an apartment, or interact with police. Taken as a whole, SB 244 is a transparent attempt to deny transgender people autonomy over their own identities and push them out of public life altogether.”

“SB 244 presents a state-sanctioned attack on transgender people aimed at silencing, dehumanizing, and alienating Kansans whose gender identity does not conform to the state legislature’s preferences,” said Heather St. Clair, a Ballard Spahr litigator working on the case. “Ballard Spahr is committed to standing with the ACLU and the plaintiffs in fighting on behalf of transgender Kansans for a remedy against the injustices presented by SB 244, and is dedicated to protecting the constitutional rights jeopardized by this new law.”

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