Breaking: Justice Department Says HB 2 Violates Federal Law

North Carolina one step closer to losing nearly $1 billion in federal funding over anti-transgender law
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This Bill is all but in the toilet!

WASHINGTON – The U.S. Department of Justice notified North Carolina Governor Pat McCrory this afternoon that HB 2, the state’s discriminatory anti-transgender law, violates Title VII of the Civil Rights Act, as well as Title IX.

Federal officials have given lawmakers until Monday to confirm “that the State will not comply with or implement HB2,” according to the Charlotte Observer. Should state officials ignore the Justice Department, North Carolina stands to lose $861 million in federal education funding.

The notification from the Justice Department is the latest blow to the discriminatory law’s legal standing. Last month, the U.S. Court of Appeals for the Fourth Circuit ruled that a Virginia school board’s move to ban a transgender student from using public restrooms that match his gender identity violated Title IX. The ruling is significant because the Fourth Circuit covers North Carolina. The ACLU, Lambda Legal and Equality North Carolina also are challenging the law in court.

“Actions have consequences, and Governor McCrory and his legislative allies are now paying the price for this anti-transgender law that they so hurriedly enacted,” said Matt McTighe, Freedom for All Americans executive director. “HB 2 is a solution in a search of a problem that simply doesn’t exist, and lawmakers must take immediate action to fully repeal it. The state’s economy and reputation have suffered enough, and now students all across the state stand to lose out on nearly $1 billion in critical funding because of HB 2. The livelihoods of North Carolina’s families are at stake, and there is no excuse for inaction.”

In the Justice Department’s letter to Governor McCrory, Valita Gupta, the principal deputy assistant attorney general, noted:

“…The Department of Justice has determined that, as a result of compliance with and implementation of NC House Bill 2, both you and the state of NC are in violation of Title VII of the Civil Rights Act of 1964…

“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…

Based upon the above, we have concluded that in violation of Title VII, the state is engaged in a pattern or practice of resistance to the full enjoyment of Title VII rights by employees of public agencies…”

Awareness of how HB 2 harms not just North Carolina’s economy and reputation, but the state’s transgender community as well, is growing. Earlier this week, Freedom for All Americans partnered with Equality North Carolina and the American Unity Fund in releasing a first-of-its-kind ad that illustrates the negative consequences of HB 2 on transgender North Carolinians. The ad is available online at

Freedom for All Americans is the bipartisan campaign to secure full nondiscrimination protections for LGBT people nationwide. Our work brings together Republicans and Democrats, businesses large and small, people of faith, and allies from all walks of life to make the case for comprehensive nondiscrimination protections that ensure everyone is treated fairly and equally.

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