A federal appeals court won't reconsider a three-judge panel's ruling that a transgender teen must be allowed to use the boys' restroom at school. The case has implications for the fate of North Carolina's controversial House Bill 2.

The 4th U.S. Circuit Court of Appeals in Virginia denied the Gloucester County School Board's appeal on Tuesday.

The school board had asked for a full-court review after a three-judge panel said schools are bound by Department of Education guidelines, which say students must be allowed to use restrooms corresponding to their gender identity.

The Justice Department cited the original ruling in its lawsuit calling out North Carolina's HB2, which requires transgender people to use the bathroom corresponding to the sex listed on their birth certificate.

Governor Pat McCrory issued a statement in response to this latest ruling, saying that schools should be allowed to set their own bathroom policies. McCrory is calling on Congress to clarify the scope of federal anti-discrimination laws.  

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