In a new letter from the U.S. Department of Justice, Gov. Pat McCrory was informed that part of the law — often referred to by its bill number, House Bill 2, or just HB 2 — violates Title VII of the Civil Rights Act of 1964. As a result, the state could face the loss of billions of dollars in federal aid.

Similar letters were also sent to the North Carolina Department of Public Safety and the University of North Carolina.

McCrory said he's not taking the threat lightly, nor should any other state:

"A claim by the Obama administration charges that one part of House Bill 2, which requires state employees in public government buildings and students in our universities to use a restroom, locker room and shower facility that match their biological sex, is now in violation of federal law. The Obama administration has not only staked out its position for North Carolina, but for all states, universities and most employers in the U.S.

"The right and expectation of privacy in one of the most private areas of our personal lives is now in jeopardy. We will be...

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