Businesses Criticize ‘Economically Reckless’ Bill Prohibiting Immigrant Children from Attending School

More than two dozen business owners in Chattanooga have voiced strong opposition to a proposed bill requiring student immigration background checks in Tennessee’s public schools, labeling it as “economically reckless.” The Tennessee Small Business Alliance, which includes local businesses such as restaurants, real estate firms, and retail stores, operates in the district represented by Senator Bo Watson, who is co-sponsoring the legislation.

Senator Watson, a Republican, is advocating for the bill that mandates proof of legal residency for enrollment in public K-12 and charter schools. Additionally, the bill would permit public schools to charge tuition to families of children unable to prove legal residency in the U.S. or potentially deny them access to public education. House Leader William Lamberth of Gallatin, also a co-sponsor, has introduced a version of the bill that makes immigration status verification optional rather than mandatory across Tennessee’s more than 1,700 public schools.

This bill, among the most contentious in the 2025 Legislative session, is gaining traction even as it faces significant protest. It is scheduled for further debate in a House committee meeting on Monday. A statement from the business alliance criticized the bill as a “political stunt” that is out of touch with community values and harmful to the economy. According to the American Immigration Council, immigrants in Tennessee contribute significantly to the economy, with over 430,000 immigrants collectively paying $4.4 billion in taxes.

In response, Senator Watson emphasized the need for a dialogue on the financial implications of educating undocumented students in Tennessee, pointing out that the Supreme Court’s 1982 decision in Plyler v. Doe, which secures the right to public education for all children regardless of immigration status, requires reevaluation in the current context. Watson further mentioned that the rising costs of English-language instruction also motivated the proposed legislation. However, critics, including Democrats, argue that assumptions linking English language learners to undocumented status are inaccurate.

Kelly Fitzgerald, founder of a Chattanooga co-working space and one of the 27 business leaders opposing the bill, questioned the ethics of denying education to undocumented children whose families already contribute taxes funding public schools. Fitzgerald expressed concern over the legislative focus on this issue amid more pressing challenges and advocated for preserving educational opportunities for all children.

The Bottom Line

The proposed legislation to mandate immigration checks in Tennessee’s public schools has sparked a significant debate with potential implications for both communities and local economies. If enacted, the bill could fundamentally alter the landscape of public education in the state, impacting the enrollment and accessibility of educational resources for immigrant families. This could lead to broader social and economic repercussions, including potential reductions in school diversity and increased financial strain on immigrant households.

For local businesses and community members, the economic contributions of immigrants are substantial, and measures perceived as exclusionary may affect community cohesion and economic vitality. The ongoing discussion highlights the need for balanced policies that address financial responsibilities while ensuring the rights and opportunities for all children to receive education, irrespective of their immigration status, thereby fostering an inclusive and supportive educational environment.

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