The law prevents transgender people from using bathrooms corresponding with their gender identity and, according to today's Justice Department decision, could risk millions in federal funding for North Carolina schools. The Charlotte Observer:

U.S. Justice Department officials Wednesday notified Gov. Pat McCrory that House Bill 2 violates the U.S. Civil Rights Act.

The department gave state officials until Monday to address the situation “by confirming that the State will not comply with or implement HB2.”

The letter says HB2, which pre-empted Charlotte’s anti-discrimination ordinance, violates Title IX of the Civil Rights Act, which bars discrimination in education based on sex, and Title VII, which bars employers from discriminating.

If that determination is upheld, North Carolina could lose millions in federal school funding. During the current school year, state public schools received $861 million in federal funding.

Seattle Mayor Ed Murray and Washington Governor Jay Inslee have banned most publicly funded travel to North Carolina since that law was passed. Right-wingers in Washington are trying to get a similar law on the ballot here. A broad-based coalition is fighting back.