Tennessee Business Leaders Welcome Divided Government
Business leaders across Tennessee shared their views on the 2026 midterm results and what a split state and federal government could mean for the economy.
Updated on Nov. 6, 2026 in Economic Policy
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Tennessee business leaders expressed optimism about divided government following the 2026 midterm elections, in which Republicans kept control of the state government while Democrats gained six seats in the state House. Governor-elect Marsha Blackburn appointed Stuart McWhorter to chair her transition team.
Why it matters
Business owners' greatest fear is uncertainty, according to economist Mike Koefed, and the election results may reduce some of that uncertainty for Tennessee companies. Policy uncertainty may persist, however, until businesses see how the new political environment translates into concrete decisions.
Democrats gained six seats in the Tennessee state House of Representatives in the 2026 midterms, while Republicans maintained control of state government. The national economic effects of the divided result remain unclear heading into 2027.
The players
Marsha Blackburn
Blackburn is the Republican governor-elect of Tennessee, having been endorsed for governor by the Tennessee Chamber of Commerce and Industry.
Stuart McWhorter
McWhorter is Tennessee's Economic Development Commissioner, who was appointed to chair Blackburn's transition team and has promoted the state's business climate.
Bill Lee
Lee is the Republican governor of Tennessee, who has touted the state's economic environment as a selling point in attracting businesses.
The details
Business leaders in Tennessee shared their views on the election results in interviews with economists, trade groups and small business owners. The Tennessee Chamber of Commerce and Industry had endorsed Blackburn for governor, and Gov. Bill Lee and Economic Development Commissioner Stuart McWhorter have promoted the state's economic environment as a selling point for businesses such as Oracle and Starbucks.
Timeline
February 2026: U.S. Supreme Court affirmed that Congress holds the power to levy tariffs unless it explicitly delegates that authority.
Summer 2026: Trump continued imposing tariffs, citing other legal authority.
November 6, 2026: Midterm election results were reported and business leaders reacted.
Economic Policy
The February 2026 Supreme Court decision affirming that Congress alone holds tariff power, unless it explicitly delegates that authority, set the stage for ongoing tariff disputes. Tennessee business reaction to the midterms reflects how states are weighing federal trade policy uncertainty against their own economic promotion strategies.
Tennessee businesses face continued uncertainty over federal tariffs, which can affect the cost of imported goods and planning for hiring and investment. Business owners will be watching how the new state leadership translates its priorities into concrete policy decisions.
The takeaway
Divided government can shift the focus of business uncertainty from the election itself to how new policies are carried out. Tennessee business owners should track both state transition priorities and federal tariff actions when planning investments.
Further reading
For more on state-level policy shaping business conditions, see Economic Policy coverage for Tennessee.
Source note: This article includes information reported by Petoskey News-Review.
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