A Look at NC 'Bathroom Bill' as DOJ Deadline Looms

“That deadline will come and go,” a state GOP lawmaker said of federal warnings.

— -- The U.S. Department of Justice warned North Carolina this week that it’s in jeopardy of losing federal funding because of a new state law banning people from using bathrooms that don't match the sex indicated on their birth certificate.

DOJ has given North Carolina until the close of business Monday to comply.

Until then, here’s what you need to know:

The State’s Response

N.C. House Speaker Tim Moore says the legislature won’t meet the DOJ deadline.

“It was a very tight deadline that was given, that frankly was unreasonable. In all candor, with all due respect, we think that the Obama administration is playing politics and it shouldn’t. The legislative process doesn’t work where a response can be given by just a few days,” Moore, a Republican, told reporters Thursday in a video posted by the Raleigh News & Observer. “We will take no action by Monday. That deadline will come and go.”

The Effects on North Carolina

The law has drawn the ire of LGBT groups, celebrities and activists since the governor signed it into law in March.

In addition to a federal action, she said, major conferences scheduled to be held by the university have been delayed or canceled.

Major companies have also halted expansions planned for the state, and several entertainers have canceled performances.

“The new law perpetuates discrimination and it violates the values and principles that are at the core of PayPal’s mission and culture,” PayPal CEO Dan Schulman said.

What’s Next?

The Justice Department said that it hopes North Carolina will voluntarily comply with federal law, according to sources.

DOJ prefers to ask for voluntary compliance by recipients of federal money so that they can continue to receive funds.

But DOJ pointed out that it has a range of tools to seek compliance, including a court order.

According to ABC News' Supreme Court contributor, Kate Shaw, any lawsuit brought by DOJ could be complicated by the fact that North Carolina Attorney General Roy Cooper has stated that he will not defend HB2 in any legal challenge.

“Such refusals to defend by state officials, though rare, do occur; here, either the governor or the legislature itself would likely hire separate counsel to defend the law,” Shaw said.

ABC News’ Mike Levine contributed reporting.