The House has passed a resolution that directs the state to sue over the federal refugee resettlement program.
The Senate previously approved the resolution and would only have to agree to a change that would allow a private law firm to sue on behalf of the state before the measure becomes law.
Governor Bill Haslam cannot veto it because it is a resolution and not a bill.
Immigrant rights groups condemned the proposal after Monday's vote, saying the true intention of the measure was to stop or limit Muslim refugee resettlement in Tennessee. They also said the state would appear unwelcoming.
Supporters of the measure say that the state has to bear some of the costs of refugees, but the federal government gets all the say in the program.
