The US government and the state of North Carolina are suing each other over a law restricting public toilet access for transgender people.
The Obama administration is asking North Carolina to declare that it is violating the 1964 Civil Rights Act.
The state, meanwhile, is accusing the government of "baseless and blatant overreach."
The so-called bathroom law, which was passed in March, bans people from using toilets not corresponding to their biological sex.