The bill was introduced in Congress in April and, in its original form would have made it illegal to fire, refuse to hire or refuse to promote an employee based on the person's sexual orientation or gender identity.
Late last week all references to transsexuals and gender identity was removed in a backroom deal orchestrated by Rep. Barney Frank (D-Mass.).
Frank, one of only two out members of Congress, is the lead sponsor of ENDA in the House. His decision to split off transgender rights infuriated LGBT activists.
On Sunday he tried to quell the dissent, saying removing trans rights was the only way to get the rest of the measure passed.
"It is never possible for us at any given time to get everything that we would like, and so we have to make difficult choices," said Frank.
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"Detracting from the sense of celebration many of us feel about that is regret that under the current political situation, we do not have sufficient support in the House to include in that bill explicit protection for people who are transgender."
Frank went on to say that it boils down to "whether we should pass up the chance to adopt a very good bill because it has one major gap."
The move also lost the bill co-sponsor Tammy Baldwin, the only other openly gay member of Congress.
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