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The Tennessee Conservative [By Adelia Kirchner] –
A new state law dismantling diversity, equity and inclusion (DEI) departments across the state continues to receive criticism from left-leaning groups in Tennessee as the Minority Women Enterprise programs created by the City of Memphis and Shelby County Government come to an end.
These programs specifically promoted the government funding of minority and women-owned businesses and focused on identifying and providing resources to such businesses.
“The City of Memphis is operating in full accordance with state law and is awarding contracts based on lawful eligibility criteria,” said Tannera Gibson, the Chief Legal Officer for the City of Memphis.
In the wake of these programs shutting down, the mainstream media is citing a 2025 Wells Fargo report on the impact of women-owned businesses on the U.S. economy which notes that 40% of all U.S. businesses are women-owned and black-women-owned businesses account for 14% of all women-owned business in the country.
These businesses reportedly bring in over $118 billion, but their growth has reportedly slowed “as systemic challenges are in place.”
“A challenge for women and minority-owned business owners is systemic roadblocks and funding cuts,” reads a recent article published by Action 5 News.
The “Dismantling DEI Departments Act,” sponsored by Sen. Jack Johnson (R-Franklin-District 27) and Rep. Aron Maberry (R-Clarksville-District 68), passed in the Tennessee General Assembly with flying colors despite Democrat opposition arguing that the removal of DEI departments would take away equal opportunity.
Local business owner Sherrye Smith shared similar sentiments earlier this week, telling Action 5 News that the Minority Women Enterprise programs in her area being taken away was a “blow” and that she was shocked to hear about the programs were shutting down.
“It can be very disappointing, it can be very overwhelming,” said Smith. “But as a business owner, we’ve hit roadblocks before.”
Shelby County Commissioner Britney Thornton also shared her own concerns about the DEI programs going away.
“Now that we are enforcing something that is going to take away so much of the progress we had been making…That’s the part that concerns me. We had the program. We were starting to train individuals on how to get county contracts and how to get city contracts, where the resources were, and now, we are being told by legal we can’t even talk about it,” Thornton said.
The county commissioner also discussed what she has observed with government funding related to minority-owned businesses.
“What we have seen on the county side is that we have a significant underspend somewhere between 0% and 8%, we were spending with minority businesses,” said Thornton. “We know that Black businesses are within that figure.”
SB1084 was signed into law by Gov. Bill Lee (R-TN) two months ago on May 9th, 2025, and went into effect immediately, prohibiting departments, agencies, and any other entities or political subdivisions of the state from maintaining or authorizing an office or department that promotes or requires discriminatory preferences to increase diversity, equity and inclusion.
Put simply, state and local governments and any government entities can no longer legally participate in discrimination in the name of DEI.
“DEI programs, while claiming to support inclusion, often create division and inequality,” Rep. Maberry said back in April. “Dismantling them is a meaningful step toward a more united, merit-based future, and I’m proud to lead this effort for the Volunteer State.”
Additional DEI developments seen by Tennesseans in recent months as a result of federal efforts in combination with Tennessee’s “Dismantling DEI Departments Act” include:
About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee. You can reach Adelia at adelia@tennesseeconservativenews.com.
