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.
Rehoboth Beach
Officials raise troubling concerns about Rehoboth mayoral candidate Suzanne Goode
Homophobic emails, ‘aggressive’ behavior cited: ‘It just seems to be getting worse’
As Rehoboth Beach voters prepare to elect a new mayor on Aug. 8, some city officials and local residents are raising new concerns about the behavior of City Commissioner and mayoral candidate Suzanne Goode.
In addition to a history of troubling emails in which she has used homophobic language and criticized the city’s rainbow crosswalks, Goode is being accused of inappropriate behavior by a neighbor and a fellow Commissioner related to a dispute on the Nextdoor online platform.
The Blade spoke to City Manager Taylour Tedder, Commissioner Chris Galanty, and others about Goode’s behavior during her time as commissioner.
Goode was elected commissioner in August 2024. Fellow commissioner Susan Stewart, who is also running for mayor, criticized Goode’s behavior in a March 9, 2026 meeting, bringing up emails outlining Goode’s offensive conduct toward city staff.
In one email, Goode wrote to Rehoboth Beach City Solicitor Lisa Borin Ogden: “I am sorry that I learned from Google when you were first interviewed [in the] spring [of] 2025 that you are Jewish. My opinion of my fellow Jews declined significantly thanks to you since last summer. Actually would have thought you would have more compassion than the average person, based on your late brother. Except you don’t. I am sick of your haughty attitude toward me.”
In other emails, Goode questions why city officials encouraged CAMP Rehoboth and Clear Space Theatre to apply for grant funds. She has denigrated both institutions, referring to CAMP as a “questionable non-profit” and Clear Space as “second rate” with a “woke, drag queen bent” at times. She accuses Rehoboth’s LGBTQ community of displaying “their sex lives in public view” and fears physical violence from LGBTQ activists.
Goode disputed the claims and called for the city to remove Stewart’s remarks from the website.
The following statements were included in the emails sent by Goode:
• “Gays and theatre aficionados can donate as much as they like to these pet causes. Some taxpayers think the theatre is second-rate as community theatres go, and many dislike the RB emphasis on LGBTQ when heterosexuals don’t demand equivalent display of their sex lives in public view.”
• “Just because the LGBTQ community feels oppressed and discriminated against, that doesn’t mean that those who identify as LGBTQ are better able to recognize racial discrimination than someone like myself. It might surprise some of you to learn that I briefly dated an African American fellow college student.”
• “A performing arts and LGBTQ agenda isn’t appropriate for BOC spending when the city faces over $60M in debt.”
• “But there are some folks in town, who ironically have to remain in the closet (conservatives now have to do what gays had to do in the 20th century — ah, the irony) who object to the woke, drag queen bent of Clear Space at times. They have confided this in me, and thanked me for fighting for their tax dollars. Maybe I will regret speaking up, as some LGBTQ activist will attack me physically, even though I am a complete supporter of gay rights, and have as many gay male friends as female friends now that I live in RB with a large gay population.”
In the emails, Goode also referred to City Manager Tedder as “the mayor’s whore.”
Stewart told the Blade that the troubling behavior has since escalated.
Commissioner Chris Galanty spoke to the Blade about Goode’s behavior as commissioner and her issues with the rainbow crosswalks in town.
“Suzanne told me on two separate occasions that she didn’t like the rainbow crosswalks, and she said that she didn’t understand why they had to exist, and she didn’t understand why gay people had to advertise their sexuality, and she said straight people don’t have to do that.”
Galanty said that when he challenged her on this, she “moved very quickly to another topic.” He said that she has now shifted her perspective and is more concerned that the rainbow crosswalks are an issue of labor costs.
Goode told the Blade that, “Unfortunately, the rainbow crosswalks have potentially reduced the upkeep of the conventional crosswalks. But the rainbow crosswalks are attractive in and of themselves, and they do add to our recognition of Rehoboth’s longstanding status as a gay-friendly town.”
Accusations of “aggressive” behavior by Goode aren’t limited to emails. Last summer, Goode came to the home of Diana Jones, a property owner in Rehoboth Beach who is a neighbor of Galanty’s. Jones spoke to the Blade to share her experience with Goode.
Jones is active on Nextdoor, an online social network for neighborhoods. She said that she got involved on the platform during the time of the commissioners election last summer, in which her neighbor, Chris Galanty, was elected as commissioner.
Jones said that she made posts supporting Galanty. She said that someone posted a link of a lawsuit that involved Goode’s husband, Jeffrey Goode, who lost his race for commissioner last summer. Jones said that she reposted the link after it was taken down.
Jones said that the lawsuit was “very relevant to somebody who is running for city commissioner.”
Jones said that Suzanne Goode showed up at her house as a result of the post. Jones was out walking her dog nearby so Goode briefly spoke with Jones’s husband who was home.
“She came over to my house because she was saying I was doxing him,” said Jones. Jones said that Goode then found her as she was walking her dog and tried to talk to her about her Nextdoor posts, saying that she “brought up a very painful time in her life.”
Jones said that she has not had any communication with Goode since.
When asked for comment on the situation with Jones, Goode responded by saying “Diana Jones’s behavior toward me was despicable, and the way she has chosen to give her side of the story to news media says more about her than it will ever say about me.”
Galanty told the Blade that Goode came to his house in late June of this year when he was not home. She then called him about Jones.
“She relayed to me that she was having a disagreement with my neighbor on the Nextdoor platform, and she asked me to intercede with the neighbor,” said Galanty. “She said, ‘Please speak to her because I am frustrated with what she is saying. She needs to stop, and you need to say something to her.'”
Galanty said that Goode called him four times and texted him 32 times in the span of three and a half hours the next day.
Galanty said that he responded the next day, telling her that her behavior was inappropriate.
“Eventually it took a couple of weeks, but she apologized in her own way. She just said we just need to let it go.”
From his perspective as commissioner, Galanty said, “She likes to re-litigate things that have happened, six months ago, nine months ago. She likes to rehash issues that are in the past.”
“She can be really aggressive, and people are just really turned off by her,” said Galanty.
Tedder, who has accused Goode of creating a “hostile work environment,” told the Blade about his experiences working with Goode.
“She does not support the staff, and constantly tells us to resign,” said Tedder.
Tedder said that Goode texted City Solicitor Ogden at 7:45 a.m. on a Saturday, telling her to resign.
“Sometimes she does have good ideas. It’s just it gets so lost in these pages and pages of emails and thousands of emails that she sends,” said Tedder.
In regards to Goode’s behavior, Tedder said it has been going on since the beginning. “It just seems to be getting worse.”
Maryland
Advocates for trans students urge Md. to fight White House threats
Four school districts under federal investigation
By JESSICA CALEFATI | Allies of transgender children are urging state education officials to fight back against the Trump-Vance administration, which has threatened to punish a growing number of Maryland school districts over local policies that affirm students’ gender identities.
The advocates testified Tuesday morning before the Maryland State Board of Education — one day after the U.S. Education and Justice departments alleged that Anne Arundel County’s school system violated federal student privacy law by withholding a student’s gender identity from their parents. A spokesperson for the district said Monday legal counsel had not yet reviewed the claims and that the district had no further comment.
School districts in Prince George’s, Montgomery, and Frederick Counties were already under investigation for allegedly violating Title IX, the civil rights law that prohibits sex-based discrimination. The federal government last month threatened to revoke funding from the districts because they allow trans students to use restrooms and locker rooms that align with their identities.
The rest of this article can be read on the Baltimore Banner’s website.
Maryland
White House threatens Anne Arundel schools over gender identity policy
District faces possible legal action or loss of federal funding
By JESSICA CALEFATI | The Trump-Vance administration on Monday threatened to punish Anne Arundel County’s school system with legal action or the loss of federal funding for allegedly withholding information about a student’s gender identity and transition from the child’s parents.
The U.S. Education and Justice Departments together determined that the suburban Maryland district treats students’ gender identities as confidential medical information that cannot be shared with parents, in violation of federal student privacy law, according to a news release. A federal lawsuit filed against the district earlier this month made similar claims.
“As a mother and a grandmother, it is unconscionable that any school district would hide the most sensitive information about children in their care from their own parents,” U.S. Secretary of Education Linda McMahon said in a statement. “This is not only an affront to basic moral principles, but also to parents’ rights under federal law.”
The rest of this article can be read on the Baltimore Banner’s website.
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