Raleigh: Thousands of people flocked to North Carolina's capital on Monday to show both support and disdain for a law that has thrust the state into the international spotlight over its restrictions on transgender toilet access and gay rights.

It follows a number of high profile cancellations of music concerts and business ventures in the state. Last month, North Carolina became the first US state to require transgender people to use restrooms in public buildings and schools that match the sex on their birth certificate rather than their gender identity.

Protesters rally against House Bill 2 in Raleigh, North Carolina on Monday. House Democrats filed a repeal bill that stands little chance of passing. Credit:News & Observer/AP

Politicians returned to Raleigh to begin a short session designed to address the state budget. But controversy over the new law, which has drawn reaction from US presidential candidates, US President Barack Obama and British Prime Minister David Cameron among others, is expected to dominate.