WASHINGTON, DC –  The U.S. Justice Department said in a letter than North Carolina's controversial House Bill 2 violates federal civil rights laws by preventing transgender state workers from using the restrooms and locker rooms of their choice.

In a letter to Governor Pat McCrory, Deputy Assistant Attorney General Vanita Gupta gave McCrory until next Monday to "remedy" the violations associated with House Bill 2, basically asking for the law to not be enforced.

At stake could be millions of federal dollars.

Reaction from state lawmakers, from the Governor on down was swift.

In a statement late Wednesday, Governor McCrory said he and his legal staff are “reviewing their options” and went on further to state “A claim by the Obama administration charges that one part of House Bill 2, which requires state employees in public government buildings and students in our universities to use a restroom, locker room and shower facility that match their biological sex, is now in violation of federal law. The Obama administration has not only staked out its position for North Carolina, but for all states, universities and most employers in the U.S.

“The right and expectation of privacy in one of the most private areas of our personal lives is now in jeopardy.”

Lt. Governor Dan Forest also issued a statement:

"To use our children and their educational futures as pawns to advance an agenda that will ultimately open those same children up to exploitation at the hands of sexual predators is by far, the sickest example of the depths the Obama Administration will stoop to 'fundamentally transform our nation.'"

Through his Cooper for NC organization which is running his Democratic campaign for Governor, Attorney General Roy Cooper said "Enough is enough. It's time for the Governor to put our schools and economy first and work to repeal this devastating law."

Sen. Dan Blue, the Democratic Leader of the Senate also weighed in: “This bill is a direct assault on the people’s rights,” Senator Dan Blue (D-Wake) said Wednesday. “Not only the rights of transgender people and the LGBT community, but the rights and protections of everyone in this state.

“We are encouraged by the Justice Department’s assessment of this situation,” Blue continued. “We hope that, if Governor McCrory and state Republicans won’t listen to the people of this state, then they will heed the warnings of the federal government. This bill has now put billions of dollars in federal funding for our schools in jeopardy for the state of North Carolina. We can’t afford that.”