The debate over transgender bathroom use to now moving to schools across the nation.

FOX's Rachel Sutherland reports from Washington:

Some school systems, including New York and D.C., already have transgender bathroom policies. But the Obama administration is now directing all public schools to allow boys and girls to use the restroom that matches their gender identity.  

The Education and Justice departments sent a letter to school officials which doesn't carry the force of law, but does include a threat that schools which do not comply could face lawsuits and the loss of federal aid.

The move comes as the Obama administration and North Carolina go to court over the state's transgender bathroom law.

In Washington, Rachel Sutherland, FOX News.

Follow Rachel Sutherland on Twitter: @SutherlandFox