The U.S. Justice Department on Wednesday told North Carolina Governor Pat McCrory that a state law that targets the LGBT community violates the U.S. Civil Rights Act and Title IX.

North Carolina's House Bill 2 blocks cities from enacting LGBT protections and limits the bathroom choices of transgender people in government buildings, including schools.

The department asked state officials to confirm by Monday that they “will not comply with or implement HB2.”

“Access to sex-segregated restrooms and other workplace facilities consistent with gender identity is a term, condition or privilege of employment,” the letter to McCrory states. “Denying such access to transgender individuals, whose gender identity is different from their gender assigned at birth, while affording it to similarly situated non-transgender employees, violates Title VII [of the Civil Rights Act].”

North Carolina stands to lose billions in federal education funding if the finding is upheld.

McCrory called the action “something we've never seen regarding Washington overreach in my lifetime” and said that the issue now impacts every state.

Republican lawmakers who have defended the law, including House Speaker Tim Moore and Senate Leader Phil Berger, also criticized the federal government.

“I guess President Obama, in his final months in office, has decided to take up this ultra-liberal agenda,” Moore told reporters.