DOT Issues Major Change: The U.S. DOT's Interim Final Rule and the Future of the Disadvantaged Business Enterprise (DBE) Program
- Apex Business Pro
- Oct 3
- 3 min read
On September 30, 2025, the U.S. Department of Transportation (DOT) released an Interim Final Rule (IFR) that takes immediate effect and introduces sweeping changes to how its Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) programs evaluate eligibility.
The landscape of government contracting is undergoing a significant transformation. The core of this change? The elimination of the race- and sex-based presumptions of social and economic disadvantage that have been a cornerstone of these programs for decades.
This move is a direct response to a series of legal challenges and recent court decisions, including a pending federal case in Kentucky, that have raised questions about the constitutionality of the previous rules. Citing the principle of equal protection under the law, the DOT has determined that automatic presumptions based on race and gender can no longer be defended.
Some key changes:
The definition of “socially and economically disadvantaged individual” is revised so that race and sex cannot be used as presumptions.
Every applicant must submit a personal narrative and supporting evidence illustrating how systemic barriers or economic hardship uniquely affected them.
Unified Certification Programs (UCPs) must reevaluate all currently certified DBE/ACDBE firms under the new standards, recertifying those who qualify and decertifying those who do not.
Until recertification is complete, DOT prohibits recipients (i.e. project sponsors) from setting DBE goals or counting DBE participation toward goals.
Reporting and recordkeeping rules are also revised; for example, DOT removes the previous requirements to collect and report majority-owner race / sex data from bidders lists.
Suspension of Goals: Until the reevaluation process is complete, federal funding recipients (such as state DOTs and local agencies) are prohibited from setting new DBE contract goals or counting any DBE participation toward existing goals. This effectively puts many aspects of the program on hold for the time being.
For businesses, this shift means a new reality. Previously certified DBEs must now gather the necessary documentation and narratives to prove their disadvantage. Non-DBE firms, on the other hand, may see increased competition for federally funded work as the set-aside protections are temporarily suspended and the eligibility criteria become more universal.
The ripple effects of this IFR will be felt across the civil engineering, construction, and transportation sectors. It signals a new era for diversity and inclusion programs in government contracting, one where the focus is shifting from group identity to individual experience and demonstrated need. The coming months will be crucial as businesses and agencies navigate these new regulations and the industry adapts to a fundamentally different landscape.
This rule marks a fundamental shift in how disadvantage will be evaluated under DOT’s DBE/ACDBE programs. While the intent is to align eligibility with constitutional protections and ensure fairness, the transition will likely present challenges and uncertainties for participants, certifiers, and project sponsors alike.
Tips for Navigating the New Landscape
If you are a current DBE/ACDBE, begin preparing your personal narrative and financial documentation now.
Engage with your Unified Certification Program (UCP) to understand their reevaluation timeline.
Monitor the federal docket for the IFR (DOT-OST-2025-0897) and submit comments during the 30-day comment window.
For project sponsors or contracting agencies, revise your procurement goals and plans to account for the temporary suspension of DBE counting until certification transitions are complete.
Seek legal or compliance guidance to ensure your new applications meet the stricter standards.
Sources:
McDonald Hopkins. (2025, September 30). DOT interim final rule: Sweeping changes to the DBE/ACDBE certification rules and goals. McDonald Hopkins LLC. https://www.mcdonaldhopkins.com/insights/news/dot-interim-final-rule-sweeping-changes-to-the-dbe-acdbe-certification-rules-and-goals
PilieroMazza PLLC. (2025, September 30). DOT ends race- and sex-based presumptions of disadvantage in DBE and ACDBE programs. PilieroMazza PLLC. https://www.pilieromazza.com/dot-ends-race-and-sex-based-presumptions-of-disadvantage-in-dbe-and-acdbe-programs/
U.S. Department of Transportation. (2025, September 30). Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) programs: Interim final rule [PDF]. U.S. DOT. https://www.transportation.gov/sites/dot.gov/files/2025-09/DBE%20IFR.Signed.9-30-2025.pdf
U.S. Department of Transportation. (2025, September 30). Guidance for recipients regarding implementation of the interim final rule [PDF]. U.S. DOT. https://www.transportation.gov/sites/dot.gov/files/2025-09/DBE%20IFR%20Guidance.9-30-2025.pdf
U.S. DOT – Federal Highway Administration / American Council of Engineering Companies of Massachusetts. (2025, October). U.S. DOT announces significant changes to DBE program. ACEC/MA. https://www.acecma.org/news/u-s-dot-announces-significant-changes-to-dbe-program/
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