|North Carolina Gov. Pat McCrory|
From the New York Times:
Cutting off any federal money — or even simply threatening to do so — would put major new pressure on North Carolina to repeal the law, which eliminated local protections for gay and transgender people and restricted which bathrooms transgender people can use. A loss of federal money could send the state into a budget crisis and jeopardize services that are central to daily life.
Although experts said such a drastic step was unlikely, at least immediately, the administration’s review puts North Carolina on notice that the new law could have financial consequences. Gov. Pat McCrory of North Carolina had assured residents that the law would not jeopardize federal money for education.
The North Carolina law created a mandatory statewide anti-discrimination policy, but it did not include specific protections based on sexual orientation or gender identity. The law prohibits transgender people from using public bathrooms that do not match the sexes on their birth certificates.
The Departments of Housing and Urban Development, Education and Transportation have all confirmed to the NY Times they are reviewing whether the new North Carolina law would risk currently funding.