The Charleston County Council is waiting to hear from the South Carolina Attorney General's Office before deciding whether to withhold funding from the Citadel.
The decision is based on a Confederate flag hanging in the school chapel.
Councilman Henry Darby says concerned constituents urged him to do something when they noticed the flag. He originally threatened to withhold $1 million dollars in funding.
The Citadel says the state's Heritage Act protects the flag.
"I would tend to think they would find that given previous decisions, this would come under this Heritage Protection Act and it would be protected," said former State Attorney General Charlie Condon.
The Citadel says the flag is a memorial for Citadel cadets who died in the Civil War.
The Attorney General's Office said it received a request for an opinion on the flag debate. There's no word on when it will release that opinion.