RALEIGH, NC (AP) - North Carolina's prized public universities risk losing more than $1.4 billion a year in federal funds if Republican state lawmakers don't change a new law limiting the rights of LGBT people.
The U.S. Justice Department wants University of North Carolina officials to say by Monday that transgender people can use UNC restrooms aligning with their gender identity.
The government says the universities and other state agencies are violating federal anti-discrimination laws.
UNC President Margaret Spellings has said that while public universities would comply with the law, she hopes legislators change it.
The former law school dean at nearby Duke University, Katharine Bartlett, says the potential loss of this federal money means Washington is holding a very big stick.
But Dorie Nolt, a federal Education Department spokeswoman, says every Title IX enforcement case in the past decade has been settled before any funds were taken away.