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The Obama administration’s latest move could change rules on who uses which bathroom AP
FILE- In this Aug. 23, 2007, file photo, a sign marks the entrance to a gender-neutral restroom at the University of Vermont in Burlington, Vt. Nearly all of the nation's 20 largest cities, including New York City, have local or state nondiscrimination laws that allow transgender people to use whatever bathroom they identify with, though a debate has raged around the topic nationwide. Bill de Blasio, a Democrat, signed an executive order on Monday, March 7, 2016, that guarantees people access to single-sex facilities consistent with their gender identity at city facilities, including offices, pools and recreation centers, without the need to show identification or any other proof of gender. (AP Photo/Toby Talbot, File)

The Obama administration is not backing down from the fight over the so-called “bathroom bill.”

In the midst of what has become a legal standoff between North Carolina and the federal government, the Obama administration on Friday issued a directive to public schools to allow transgender students to use bathrooms of their corresponding gender identity. The North Carolina legislature is working to uphold a bill that outlaws people from using public bathrooms that don’t align with the biological sex listed on their birth certificates.

RELATED: After North Carolina took its “bathroom law” to the federal government, here’s how the Obama administration fired back

“There is no room in our schools for discrimination of any kind, including discrimination against transgender students on the basis of their sex,” Attorney General Loretta Lynch said in a statement accompanying the directive, which is being sent to school districts Friday. The directive was released by the Department of Justice and the Department of Education.

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While the directive is not legally enforceable or punishable, it does carry some repercussions — if schools who are receiving federal funding do not follow through on the proposal, they risk getting their federal funding pulled.

Yasmeen Alamiri is a political reporter for Rare. Follow her on Twitter @Yalamiri
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