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HB2 could derail federal funding for transportation

CHARLOTTE, N.C. — North Carolina's controversial LGBT law is facing opposition from many in Washington and it could mean major local road projects miss out on important federal funding down the road.

It may sound like just a threat, but Channel 9 has uncovered there is legal precedence that could allow the government to cut North Carolina off.

During a visit to Charlotte on Monday, U.S. Transportation Secretary and former Charlotte Mayor Anthony Foxx said a law that critics have viewed as stripping gays and lesbians from discrimination protection in North Carolina could derail federal transportation funding in the future.

"We are actually reviewing the statute now and taking a look at whether our programs are implicated and whether there is a potential loss of federal funding in North Carolina," Foxx said.

On Thursday, a U.S. DOT spokesperson said the department is still reviewing the issue.

Legal experts believe it is looking at whether the law Gov. Pat McCrory signed into law last week violates the department's nondiscrimination polices along with current federal civil rights protections under Title VII.

Constitution lawyer and former County Commissioner Harold Cogdell believes the issue is on track to head to the U.S. Supreme Court. The American Civil Liberties Union filed a federal lawsuit against the state challenging the law.

The ACLU also argues the law violates Title IX by discriminating against students and school employees on the basis of sex and could put $4.5 billion in federal funding at risk.

Cogdell said a Supreme Court ruling on LGBT protections may give federal agencies more support to hold back crucial dollars if they wanted to do so.

"Until that issue gets resolved as to the applicability or the interpretation of the equal protection clause of the U.S. Constitution to this particular piece of legislation than the issue remains unresolved," said Cogdell.

Right now, the U.S. Supreme Court is not involved and a trial date has not been set on the ACLU's lawsuit against North Carolina.

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