At NYT, "North Carolina Law May Risk Federal Aid":
WASHINGTON — The Obama administration is considering whether North Carolina’s new law on gay and transgender rights makes the state ineligible for billions of dollars in federal aid for schools, highways and housing, officials said Friday.More.
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.
But the law also represents a test for the Obama administration, which has declared that the fight for gay and transgender rights is a continuation of the civil rights era. The North Carolina dispute forces the administration to decide how aggressively to fight on that principle.
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.
Anthony Foxx, the secretary of transportation, first raised the prospect of a review of federal funding in public remarks on Tuesday in North Carolina. The Department of Transportation provides roughly $1 billion a year to North Carolina. The New York Times then asked other federal agencies whether they were conducting similar reviews.
A Department of Education spokeswoman, Dorie Nolt, said on Friday that her agency was also reviewing the North Carolina law “to determine any potential impact on the state’s federal education funding.” She added, “We will not hesitate to act if students’ civil rights are being violated.”
The agency said it provided $4.3 billion to North Carolina last year for kindergarten through 12th grade as well as colleges.
The Department of Housing and Urban Development said it was doing a similar evaluation. “We’re reviewing the effects of the law on HUD funding allocated for North Carolina,” said Cameron French, a department spokesman.
White House officials had no comment...
And watch, "Video Message from North Carolina Governor Pat McCrory."
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