The bill now faces the GOP-controlled Senate. Governor Bill Lee, also a Republican, has not yet given his position on the bill.
The measure protects religious agencies from being subjected to lawsuits for not placing children with same-sex couples. It also states that the department of children's services cannot withhold a license from agencies that do so.
"No private licensed child-placing agency shall be required to perform, assist, counsel, recommend, consent to, refer, or participate in any placement of a child for foster care or adoption when the proposed placement would violate the agency's written religious or moral convictions or policies," the bill states.
Although religious adoption agencies in Tennessee have not been prevented from acting out of their moral convictions, the bill comes at a time when Catholic agencies in other states have been shut down or denied access to funding.
Rudd said the bill is comparable to cautionary steps taken by Kansas and Oklahoma, who passed similar laws last year.
"We're doing the same as nine other states have done," said Rudd of Murfreesboro, according to the AP. "Throughout the country, these faith-based organizations have been sued to the point they're being driven out of business due to costs."