Federal officials are considering whether North Carolina’s new law restricting LGBT protections makes the state ineligible for federal aid for schools, highways and housing, the officials said Friday.
Officials from the federal transportation, education and housing and urban development departments have said they will review the law and determine if it will impact funding to the state, the New York Times reported. The White House has expressed disapproval for the law but has not commented directly on how it could affect federal aid.
Such a move could aid arguments to repeal the law, after North Carolina Gov. Pat McCrory told residents it would not jeopardize federal money for education.
Read more: Why So Many States Are Fighting Over LGBT Rights in 2016
The law bans local governments in the state from enacting anti-discrimination measures to protect the LGBT community and has quickly drawn criticism from officials in other states and companies that do business in the North Carolina. The state’s attorney general called it a “national embarrassment.” It would also require that students can only use school bathrooms that match their sex at birth.
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