The Fiscal Impact of North Carolina’s HB2
Christy Mallory and Brad Sears
North Carolina’s law restricting access to restrooms based on sex listed on an individual’s birth certificate impacts an estimated 37,800 transgender people in the state, and puts at risk $4.8 billion in federal funding to state and local government entities. The law is in conflict with the gender identity non-discrimination requirements under several federal laws including Title IX of the Education Amendments of 1972, Executive Order 13672, Workforce Innovation and Opportunity Act, the Violence Against Women Act, the Affordable Care Act, the Equal Access Rule, and Title VII of the Civil Rights Act of 1964. Federal agencies that enforce the laws are authorized to suspend or terminate funding if recipients violate the non-discrimination requirements, and the US Department of Justice has notified North Carolina that its law does violate these requirements. Loss of federal funding under the laws could impact schools, workforce development programs, law enforcement, health care programs, housing assistance, and programs for survivors of violence.
This report was produced as part of a collaboration between Out Leadership and the Williams Institute on the legal and economic implications of LGBT-related policies, and funded by the Evelyn and Walter Haas Jr. fund.