Wake Forest University

NC college system's federal funds in crosshairs of LGBT law

North Carolina's prized public universities could be the biggest losers as state leaders defend a new law limiting the rights of LGBT people.

The 17-university system, which includes the University of North Carolina at Chapel Hill and North Carolina State University as well several historically black colleges, risks losing more than $1.4 billion in federal funds if the Republicans who run the Legislature don't reverse the law. The U.S. Justice Department wants an answer by the end of business on Monday.

That deadline was set in letters this week to University of North Carolina leaders, Gov. Pat McCrory and the state's public safety agency, warning that the law violates civil...