Power of the purse

The New York Times reports that

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.

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Two protesters held up signs against passage of legislation, which eliminated local protections for gay and transgender people and restricted which bathrooms transgender people can use, during a rally in Charlotte, N.C., on Thursday. Credit Skip Foreman/Associated Press