Memphis Faces Setback as New Anti-DEI Legislation Eliminates Minority Business Assistance

NASHVILLE, TN — A newly enacted Tennessee law, effective July 1, has forced the city of Memphis and Shelby County to terminate their Minority and Women Business Enterprise (MWBE) initiatives, which historically provided vital assistance to women- and minority-owned businesses in securing government contracts and resources. According to NBC affiliate Action News 5, the new Dismantling DEI Departments Act prohibits any government programs that offer advantages based on race, gender, or ethnicity, including MWBE. Sherrye Smith, a Memphis business owner and mentor, expressed her disappointment about the impact of the law, reflecting on past challenges as a business owner. Smith has closely collaborated with Lawanda Thornton, who owns Lavish, Too, a boutique that has successfully expanded over seven years. The act, introduced by Tennessee House Republican Aron Maberry, seeks to eliminate perceived divisions caused by DEI programs. Memphis leaders view this loss as a major setback for economic inclusion, with Shelby County Commissioner Britney Thornton voicing concerns over its adverse effects on local spending, particularly within minority-owned enterprises.