U.S. Justice Department Says North Carolina "Bathroom Bill" Violates Civil Rights Act

Federal officials told the state of North Carolina on Wednesday that the state's controversial law stripping protections for LGBT people violates the federal Civil Rights Act, which could cost the state millions of dollars in funding.

A letter was sent from the U.S. Justice Department to North Carolina Gov. Pat McCrory, who was come under heavy fire for passing the bill. The statewide bill was a response to a law in the city of Charlotte that rolled out sweeping protections based on sexual orientation and gender identity.

The Civil Rights Act prevents discrimination based on race, sex and gender. The Justice Department said North Carolina's HB2 violates parts of the Act that deal with employment and education.

“Access to sex-segregated restrooms and other workplace facilities consistent with gender identity is a term, condition or privilege of employment," the letter from principal deputy assistant attorney general Vanita Gupta said, according to the Charlotte Observer, which broke the story.

"Denying such access to transgender individuals, whose gender identity is different from the gender assigned at birth, while affording it to similarly situated non-transgender employees, violates Title VII."

North Carolina received $861 million in federal education funding for the current school year, which could be in jeopardy if North Carolina does not repeal the bill, according to the Observer.

“HB 2...is facially discriminatory against transgender employees on the basis of sex because it treats transgender employees, whose gender identity does not match their biological sex, as defined by HB2, differently from similarly situated non transgender employees," the letter says.

• Read more from the Charlotte Observer here.