The Tennessee House of Representatives voted to take away $250,000 from Memphis to punish the city for taking down two Confederate statues last year.
Memphis removed statues of Confederate general and Ku Klux Klan leader Nathan Bedford Forrest and Confederate President Jefferson Davis in December.
The move angered some state representatives who said Memphis used a loophole in the law to remove the statues. Lawmakers reportedly spent all session contemplating retaliation.
Several other lawmakers disapproved of the decision, including state Rep. Raumesh Akbari, who said: "This amendment, and the explanation, is hateful. It is unkind, it is un-Christian-like and it is unfair. Memphis is a city in this state, and I'm sick of people in this House acting like it's not."
The amendment is attached to a bill that's still moving through Tennessee's legislature. The funds are meant to go toward the city's bicentennial celebration.
Additional reporting by Newsy affiliate CNN.