North Carolina Gov. Pat McCrory had sued the Obama administration over the state's law that curbs legal protections for transgender people. | AP Photo/Toby Talbot, File North Carolina drops suit against Obama administration over ‘bathroom bill’

North Carolina Gov. Pat McCrory has withdrawn his lawsuit against the Obama administration over the state’s law that curbs legal protections for transgender people.

Lawyers for McCrory said in a court filing on Friday that North Carolina was dropping the lawsuit, citing “substantial costs” to the state. They wrote that continuing the litigation is unnecessary since North Carolina will have the chance to defend its transgender law, known as HB2, as part of a separate lawsuit that the Justice Department has brought against the state.


McCrory initially filed the lawsuit in May after the Obama administration threatened to withhold federal funding to the state because of the law, which requires transgender people to use public restrooms that match the sex listed on their birth certificate, rather than their gender identity. The Justice Department countered with its own lawsuit against North Carolina, filed hours later. That case remains ongoing.

The voluntary dismissal of the lawsuit on Friday won’t bring the debate over the legality of North Carolina’s law to an end anytime soon. And the question of transgender bathroom access continues to spark lawsuits around the country.

Federal judges have ruled in different directions on the issue, which may ultimately end up before the U.S. Supreme Court.

A federal judge last month ordered the University of North Carolina to let two transgender students and one employee use bathrooms that align with their gender identities. But a federal judge in Texas has temporarily blocked the Obama administration from enforcing its directive that schools allow transgender students to use bathrooms and locker rooms that match with their gender identity.