In the 81-page ruling, U.S. District Judge Thomas Schroeder said it is likely that the transgender challengers will succeed in their argument that HB2 violates federal law, in part because of how an appeals court with jurisdiction over North Carolina has ruled in a Virginia teen's case.

North Carolina Gov. Pat McCrory has defended the law. 2 law passed in March which requires people to use the bathrooms matching the identities cited on their birth certificates. His final decision on the law won't come until after that trial.

A federal judge ruled in favor of three transgender individuals, blocking enforcement of the law at the University of North Carolina.

Schroeder issues the injunction as a result of a lawsuit filed by the American Civil Liberties Union, the ACLU of North Carolina, Lambda Legal and the D.C. -based law firm Jenner & Block. 2 violates Title IX, the federal law barring gender-based discrimination in educational institutions.

"It is important to note what is (and is not) in dispute". "They should be spending time working on improving education and growing jobs, not defending HB2 and inflicting further harm on the people, reputation, and economy of North Carolina".

Setback for USA transgender campaigners as judge blocks Obama policy
In his ruling, O'Connor said there was a strong likelihood that the dissenting states will win their lawsuit. The Department of Justice expressed disappointment over the ruling and said it is reviewing its options.

Now, North Carolina has become a crucible for more than just gender identity rights but how economics mix with attempts to legislate morals.

"Schroeder of the US District Court for the Middle District of North Carolina wrote that the plaintiffs had made a clear showing that they are likely to succeed on their claim that part of the law violates Title IX". "It sends a signal to the state and the rest of the country, most of whom are deeply opposed to this that we're really not going to have this on the books that much longer", said North Carolina Senator Jeff Jackson.

In granting the injunction, Schroeder appears skeptical of the "common sense" and "public safety" claims frequently presented by those supporting (and responsible for authoring) HB 2. In the lawsuit, the groups argue that through the law, North Carolina sends a purposeful message that LGBT people are second-class citizens who are undeserving of the privacy, respect, and protections afforded others in the state. "2 passed has eased", Carcaño continued. "So nothing's really changed in that regard".

Schroeder blocked UNC from enforcing the law until the case is settled, BuzzFeed News reported.

North Carolina Senate leader Phil Berger and House Speaker Tim Moore, who have hired private attorneys to defend the law after the state's Democratic attorney general declined to do so, issued a statement maintaining that the law represents "commonsense protections to keep grown men out of bathrooms and showers with women and young girls". But the six exhibits submitted each consist of only "a short news article or editorial", and the state announced in a July conference that it does not plan to submit additional evidence regarding the request for an injunction.