Feds review North Carolina law’s impact on financial aid

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WASHINGTON (AP) — The Obama administration is reviewing whether a new North Carolina law curbing anti-discrimination protections for LGBT people could affect the flow of federal aid to the state.

White House spokesman Josh Earnest says federal agencies are leading the review of the new law’s impact on federal policies. He says the White House is not yet involved, but could offer specific direction later.

The law limits LGBT protections in the state and prevents transgender people from using bathrooms aligned with their gender identity.

Earnest says he’s not surprised some businesses are cutting back spending and investment in North Carolina out of protest. He says such laws “do not create a hospitable business environment” and force employers to question whether their employees will be treated fairly.

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