Senator Shane Reeves Faces Scrutiny Over Business Grants

News Summary

Tennessee Senator Shane Reeves is under investigation following the allocation of a $1 million FastTrack grant and tax rebates to his company, TwelveStone Health Partners. Concerns about potential conflicts of interest have emerged, especially since Reeves is both a senator and the CEO of the health services company. With substantial growth and job creation attributed to TwelveStone, allegations of ‘double-dipping’ during legislative votes have sparked public interest and debate regarding the ethics of such financial advantages.

Tennessee – Senator Shane Reeves, a Republican from Murfreesboro, has come under scrutiny following the receipt of a $1 million FastTrack grant and tax rebates for his business, TwelveStone Health Partners. The grant, awarded in 2016 by the Tennessee Department of Economic and Community Development, was intended to aid the establishment of Reeves’ health services company, which focuses on packaged medication and healthcare services.

Since its inception, TwelveStone Health Partners has made substantial investments, amounting to nearly $15 million, and created around 200 jobs within Rutherford County. The company has also experienced significant growth, now operating infusion centers in multiple states, including Virginia and Georgia. As of 2025, both TwelveStone Health Partners and its parent company, TwelveStone Holdings, are among 16,000 Tennessee businesses projected to receive franchise tax refunds exceeding $10,000, a result of legislation supported by Republican lawmakers, including Governor Bill Lee.

Reeves acknowledges that TwelveStone has adhered to all grant requirements and has seen employment numbers rise to nearly 300 individuals. However, concerns have been raised regarding potential conflicts of interest, particularly in light of the senator’s prior success in business. Before his election to the Senate in 2018, Reeves sold his previous entities, Reeves-Sain Drugstore and EnTrustRx, to Fred’s Inc. for a reported $66 million.

In 2024, thirteen out of the thirty-three Tennessee senators, including Reeves, declared a conflict of interest while voting on a substantial $1.9 billion business tax break. The nature of the grants and the financial advantages received by Reeves’ business have led to concerns about “double-dipping,” as Reeves identifies himself as both a legislator and the CEO of TwelveStone.

The Tennessee Senate operates under a code of ethics that allows senators to declare conflicts of interest without disclosing specific details. This allows them to vote based on their conscience, although the implications of such decisions are significant. Notably, Democratic Senator Jeff Yarbro declared a conflict of interest prior to voting against the tax and rebate measures, recognizing that the legislation could benefit several businesses, including his own law firm.

Yarbro, alongside state Representative John Ray Clemmons, proposed an alternative bill aimed at strengthening the state’s franchise tax regulations without providing tax rebates. However, this proposal did not gain traction among Republican leaders. Meanwhile, the Tennessee Department of Revenue has cited concerns over the existing franchise tax as a key reason for the proposed tax cuts and rebates, which are intended to avoid potential legal challenges.

Bipartisan support for the tax refund measure was noted in the House, where it passed predominantly along party lines with a vote of 69-23. Nevertheless, the transparency surrounding the businesses benefiting from these refunds has prompted criticism, particularly concerning larger corporations like FedEx and Ford Motor Co. Critics argue that the reporting requirements lack specificity, hindering community understanding of how tax dollars are allocated.

Some Republican senators have opposed the tax measure on moral grounds, arguing that it could unfairly disadvantage children based on their parents’ immigration status. Despite this, others within the party contend that the measures are reasonable and deserving of support. The bill, allowing institutions to impose tuition charges or bans based on immigration status, ultimately passed in the Tennessee Senate with a narrow margin of 19-13.

As the situation surrounding Senator Reeves and his business unfolds, the implications of conflict of interest allegations and the structure of tax legislation in Tennessee continue to generate significant public interest and discussion.

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