i found it interesting as governor pat mccory mentioned that. this is a battle and conversation that the state of north carolina did not seek out. he talked about how he complaincomplain how the federal government did not grand them the extension. i bring the timing up because if you recall the state legislature both houses of the legislature and the governor debated and passed this north carolina law in less than 24 hours. so, if they had enough time to pass that law, they certainly should have enough time to answer the government's lawsuit. >> again, this is a fast and swift request that's moving so quickly federal funding for education. >> jonathan and chase, thank you very much. >> of course, we got some new moves to talk about on the political front here. donald trump is trying to overt on his candidacy. chris christie is now leaving his white house transition team, what does it mean? as we count down to the capitol cliff hanger. what i mean by that is the big meeting that trump has with paul ryan on thursday. >>> in the middle of a perfect

we do expect governor pat mccory to have this news conference at this hour. the reaction been to the lawsuit on the ground and the back and forth now and the push from the state to the doj? >> reporter: well, any conversation, thomas with reaction has to be processed with. this is an election year. if you will notice on this lawsuit, the attorney general is not aparting to it because he's a democrat running for the governor ship against the current governor. this is a little bit of a political story here in north carolina. that had a lot of people thought that the governor might, might use this as the department of justice threat to withhold federal funds as a way to get out gracefully. we are getting this threat and it could cause you money so we are not going to enforce it. that suit being filed is partially financial base. the federal government can now withhold money as it has threaten

yesterday, governor pat mccory, releasing some bathroom access for transgender people.o notify by may 9th not to enforce the line if north carolina does not combined, its public schools could lose millions of dollars in federal funds. governor pat mccory reacted at a local news conference last night. >> what it is basically saying is that all organizations at states are going to have to comply with the new definition requirements by the federal government regarding restrooms and locker rooms and shower facilities. something we never seen regarding wash and over reach in my lifetime. >> and coming up fair game, is anything off limits as donald trump prepares to take on hillary clinton. you are watching "andrea mitchell reports" only on msnbc. using ur airline credicard miles. and surprise! those seats sometimes cost a ridiculous number of miles, making it really hard to book the flight you want. luckily, there's a better way... with the capital one venture card. with venture, you'll earn unlimited double miles on every purchase, every day. and when you're ready to travel

lauren: north carolina governor pat mccory accusing the federal government of blatantoverrage am.cole: jack lew in puerto rico yesterday to move quickly on rescue package for the territory. fox business exclusive lew told peter barnes that he's supporting a restructuring, not a bailout. peter peter what we have said that to solve the problem there's only so many choices, we structuring with oversight is the right solution. if you don't do that, then you either have chaos or a bailout. we are not talking about a bailout. we structuring is the alternative for bailout. pete pet but you need last week you wrote congress that without legislation, quote a taxpayer bailout may become the legislative course to address escalating crisis. >> right, bill, they are trying to characterize what congress is working on incorrectly as being a bailout. the reason that that's so dangerous, it's the alternative to a bailout. it's not a bailout. there's not a taxpayer dollar involved in restructuring. restructure asking what a business goes through when they go through chapter 11. nicole: 422 million-

now the agency put north carolina's governor pat mccory on notice.fficials must confirm by monday they will not comply with or implement what's known as house bill 2. if the state refuses, they risk losing hundreds of millions of dollars in federal education funding. at the live desk, i'm david culver. >>> oh, we are so close, so close to the streak of, yeah, the wet, soggy, dreary days we needed the rain. now we've got it. but this has just been ongoing and ongoing. we had two distinct areas free of showers. you can see this here just around areas of 66 headed to broad run, gainesville in the next couple of minutes. then eventually toward weaverville as well. this is really slow moving, only about 10 miles per hour. your future weather here by 9:00 this evening there'll be slow moving showers in leesburg. 49 to 52 the temperature to start tomorrow. finally a pattern break for thursday. there's your rain. friday could be a soggy morning rush. we'll talk more about that soggy day coming our way for friday. what rush hours will be like in just a >>> we

governor pat mccory filing suit after a demand from the justice department to abandon a new law requiring gender people to use public bathrooms corresponding to the gender on the birth certificate and acknowledge its discriminatory. >> the obama administration is bypassing congress by attempting to rewrite the law and set basic restroom policy. >> reporter: attorney general lynch countered with a separate filing on behalf of the federal government. >> we are seeking a court order declaring the restroom restriction imper missbly discriminatory as well as a statewide bar on forcement. the state sanction discrimination never looks good and never works. >> reporter: the governor called the fed's position, quote, baseless and blatant overreach. terms opponents use to describe the new measure they say prevents local governments and businesses from establishing protections for lesbian, gay, bisexual, and transgender residents and employees. major corporations continue to line up publicly against the bill. >> it should be evident from the response of the business community that what north carolin

governor pat mccory says he wants the legislature to change on that part.er interesting thing is the university of north carolina. they stand to lose billions of dollars and the attorney general said yesterday, the government, you know, still has the reserve the right to cancel if they believe what the state is doing is illegal. a, we have not enforced this law yet and b, we are stuck here in between iraq and our place, we want to abide by the federal law and we have so far. this is the state law, give us a break here. the board of regions of the university is meeting today and is going to determine how to respond to this and based on that that, the justice department will decide whether it will hold onto funds. >>> coming up on the short list, we'll talk to one of the people hillary clinton is eyeing as a possible running mate. you are watching "andrea mitchell reports" on msnbc. ith , o ' ♪ you see, we've got the power to turn back time. ♪ ♪ that show you missed, let's just go back and find. ♪ ♪ and let's go back and choose spicy instead of mild. ♪ ♪ and