(The Center Square) – A bill that would allow Tennessee’s school districts and charter schools to ban students who are not in the country legally was delayed due to the possible loss of federal funds if it passes.

House Bill 703’s fiscal note says federal Title VI protections extend to undocumented individuals in the United States. Title VI is part of the Civil Rights Act of 1964 that bans programs from discrimination.

“Violations of federal civil rights laws may place this funding at risk, however, the specific amount at risk is undetermined,” analysts wrote in the bill’s fiscal note.

The state receives $1.1 billion in federal funding each year. Local school systems and charter schools could also face a loss of federal funds, analysts said.

The bill, sponsored by Rep. William Lamberth, R-Portland, was put “behind the budget” and could be considered again once lawmakers pass the state budget.

The Senate passed its version of the bill last Thursday, with supporters calling the bill a “financial” decision and opponents questioning the moral cost. Senate Bill 836, sponsored by Sen. Bo Watson, R-Hixson, received “no” votes from some Republicans.

“But I think this is a bill that we do not need in the state of Tennessee and it will not pay dividends in the future for the children,” said Sen. Todd Gardenhire, R-Chattanooga.

The Small Tennessee Business Alliance said the bill’s sponsors have not shown the bill could save money.

“This is an admission that Sen. Watson and Rep. Lamberth’s attack on children isn’t just morally indefensible – it’s fiscally reckless,” the organization said in a news release. “So we want to know: Will they finally drop their crusade against these children?”

The Hamilton County Principals Association is asking the local school board to pass a resolution that says all children in that county will have access to school.

“As educators, our mission is clear: we are dedicated to creating safe, welcoming, and inclusive environments where all students can thrive,” the association said in a statement. “Efforts to exclude children from school due to their immigration status undermine this mission, threaten the well-being of vulnerable communities, and harm the future of our nation.”