On March 25, 2025, North Carolina Republican lawmakers introduced Senate Bill 516, which restricts transgender individuals from using bathrooms that do not align with their biological sex in certain state buildings.

The bill specifically targets public schools, prisons, and some government-funded institutions, including domestic violence shelters, and mandates single-gender use of restrooms and changing areas.

House Bill 2 faced significant backlash in 2016, resulting in the cancellation of major events and contributing to the electoral defeat of former Governor Pat McCrory.

Former Governor Pat McCrory noted that public understanding of transgender issues has evolved, suggesting less resistance from corporations and the entertainment industry compared to 2016.

Democrats have responded strongly against the bill, with Senator Julie Mayfield calling it a regressive move and an attack on transgender rights.

This legislation reflects ongoing tensions and debates surrounding transgender rights and public facility access in North Carolina.

Senate Bill 516 includes definitions for terms like 'boy,' 'girl,' 'man,' and 'woman,' aligning with recent guidance from the U.S. Department of Health and Human Services.

Economists predict that while the corporate backlash may not be as strong as that experienced with House Bill 2, the new bill still poses risks to small businesses.

Democrats are concerned about their ability to prevent a veto override in the House, where only one defection could enable Republicans to pass the bill.

The legislative process for the bill remains uncertain, as Republican leaders have not indicated whether they will expedite its passage or deliberate further before a vote.

In a related legislative effort, a separate bill aims to allow parents access to their teens' medical records without needing consent from the minors.

The Republican focus on transgender issues has gained momentum since the U.S. Supreme Court's legalization of gay marriage in 2015, as conservative leaders seek new causes to rally their base.