The Hill reports:
The Obama administration will not strip federal funding from North Carolina amid a legal battle over the state’s controversial law on bathroom use, the White House said Thursday.
Cabinet agencies have been conducting a review to determine whether the state’s recent legislation on LGBT rights makes it ineligible to receive education, transportation and other funding under federal law.
White House press secretary Josh Earnest said the money would keep flowing while the Department of Justice pursues a civil rights lawsuit against North Carolina.
“What has been concluded as a result of that effort is that the administration will not take action to withhold funding while this enforcement action is playing out in the courts,” Earnest said.