The debate comes after USA President Barak Obama gave an order saying that public school bathrooms and locker rooms should be used by those who identity with that gender.
Salon has reported that Georgia Congressman Rick Allen read Bible verses out loud to House Republicans during a closed door meeting.
He quoted the Bible as the group voted to reject a spending bill that included an amendment that stopped discrimination based on sexual orientation and gender identity.
Many Republican lawmakers walked out of the room and Rick Allen accused his colleagues of committing a sin with their vote.
Earlier in the month a group of Catholic bishops spoke out calling toilets based on gender identity rather than biological sex "disturbing".
Bishop Richard Malone of Buffalo and Archbishop George Lucas, who are both committee chairmen of the U.S. Conference of Catholic Bishops, issued a statement.
It read: "The guidance issued May 13 by the U.S. Department of Justice and U.S. Department of Education that treats 'a student's gender identity as the student's sex' is deeply disturbing."
Earlier in May Barak Obama's order told schools about how they could regulate bathrooms and locker rooms for transgender students and students that do not fit neatly into male or female categories.
The guidelines were published by the White House following a big debate that began when North Carolina passed a law regulating public facilities on the basis of sex.
The U.S. Department of Justice is suing North Carolina saying that this legislation violates federal civil rights law.
