In recent years, a number of states in the United States have enacted educational policies, often referred to as "critical race theory" bans, that aim to restrict teaching about race and racism in schools. This study examines how current and future elementary literacy educators interpreted and intended to respond to one such law in Tennessee. Drawing theoretically on policy sociology and critical race theory policy analysis, we qualitatively analyzed data generated in focus groups with 18 prospective and practicing teachers. Our findings illustrate the restrictive effects of the policy on elementary literacy instruction, caused partially by teachers interpreting the policy as substantially impeding their ability to engage students in critically reading, writing, and talking about race and racism. Further, findings demonstrate how this new policy intersected with and exacerbated existing curricular constraints in elementary literacy classrooms, including developmental discourses and neoliberal standardization, reinforcing normative whiteness by producing further impediments to elementary literacy instruction as a space to develop critical consciousness about race. This study contributes to emerging literature on the effects of divisive concepts legislation, as well as situating this current legislative wave within existing policy contexts of restriction.