Private colleges that don't cooperate with federal immigration authorities would lose state funding for scholarships and research under a bill approved by the Georgia House.
The chamber voted 115 to 55 on Wednesday, sending the bill to the Senate.
No schools in Georgia have embraced policies connected to the "sanctuary campus" label, but students at several metro Atlanta schools petitioned administrators following President Donald Trump's election. Trump issued a series of immigration measures in January, including a crackdown on cities that don't cooperate with authorities.
Private colleges in Georgia largely have stayed quiet about the measure, but advocacy groups say it sends a message that Georgia doesn't welcome immigrants.
State lawmakers in Alabama, Indiana and Pennsylvania have introduced similar bills. Arkansas lawmakers rejected a funding ban proposed in that state.