The Daily Show Takes on N.C.'s "Fear of Transgender Pee Pee"

The Daily Show host Trevor Noah went after North Carolina's House Bill 2 on his program Tuesday, mocking the law that forces transgender people to use public restrooms and locker rooms that do not correspond with their gender identity.

Noah told viewers that the North Carolina law takes aim at the wrong issue. The controversial new law, which voids all nondiscrimination ordinances in the state, preys upon people's unfounded fears of the transgender population, argued Noah.

"This law exploits that fear and it actually goes far beyond bathrooms, because this law actually says that gay and transgender people can't be protected as a class which means that it's OK to discriminate against them," explained Noah.

Noah questioned the logic behind the state's willingness to risk losing billions of dollars in federal funding to support an anti-LGBT law. "You're willing to give up two billion dollars over bathrooms? There is no one I would not let use a bathroom for two billion dollars," said The Daily Show host. "In fact, I would be your bathroom for two billion dollars. I would literally let you shit on me for two billion dollars."

The Department of Justice announced on Monday that it is suing North Carolina for civil rights violations in relation to the state's anti-LGBT law.

In a televised statement on Monday announcing the lawsuit against North Carolina, U.S. Attorney General Loretta Lynch put all jokes aside. "This action is about a great deal more than bathrooms," Lynch told reporters. "It is about the founding ideals that have led this country, haltingly, but inexorably in the direction of fairness, inclusion, and equality for all Americans."

Watch Trevor Noah take on North Carolina's anti-LGBT law below.