Staffanstorp municipality in Skåne, which is led by the conservative Moderates and anti-immigration Sweden Democrats, says IS returnees are not welcome.
A majority in a council committee voted on Wednesday in favour of a motion to not offer any kind of emotional or financial support to them. The motion will go to a meeting of the full council early next month.
Pierre Sjöström of the opposition Social Democrats tells newspaper Sydsvenskan that the Sweden Democrats and Moderates are in effect just playing populist politics and the motion breaches a number of laws.
But Moderate council politician Christian Sonesson tells Swedish Radio that it is about being prepared for future situations and it is important to take a forward-thinking decision.