U.S. DOT Issues Major Overhaul to DBE / ACDBE Program — What You Need to Know
- willrothconsulting
- Oct 4
- 4 min read
On 3 October 2025, the U.S. Department of Transportation published an Interim Final Rule (IFR) that makes sweeping changes to the Disadvantaged Business Enterprise (DBE) program and the Airport Concession Disadvantaged Business Enterprise (ACDBE) program. These changes take effect immediately.
Below I break down what’s changing, why it matters, and what DBE / ACDBE firms should do now.
What’s Changing
Removal of Race- and Sex-Based Presumptions
Under the old rules, certain racial or gender identities carried rebuttable presumptions of social and economic disadvantage. Under the new IFR, those presumptions are gone. Now, all applicants and existing DBE / ACDBE firms must make individualized showings of social and economic disadvantage.
Reevaluation of Existing Firms
Every currently certified firm under DBE or ACDBE must be reevaluated under the new standards. If a firm fails to meet the new criteria, it could be decertified.
The IFR does not require decertification under the usual rules; rather, these are special decertification procedures tied to this transition.
Suspension During Transition
While each Unified Certification Program (UCP) is reevaluating firms, recipients (i.e. agencies using DOT funds) may not set DBE/ACDBE contract or concession goals, nor count DBE/ACDBE participation toward goals. Also, the “fail-to-meet-goals” provisions won’t apply during this period.
Terminology and Reporting Changes
Terms like “race-neutral” / “race-conscious” are being replaced with “DBE-neutral” / “DBE-conscious.”
Some reporting requirements tied to race/sex metrics have been removed.
Disparity studies used to set goals must include more detailed methodology and capacity analyses.
Why This Is Happening
These changes respond to legal rulings and constitutional concerns:
A federal court in Kentucky ruled that the DBE program’s race- and sex-based presumptions likely violate equal protection under the U.S. Constitution.
After that, DOT and the Department of Justice concluded that continuing those presumptions would not pass constitutional scrutiny.
The Supreme Court’s decision in Students for Fair Admissions (SFFA) influenced how courts view race-based preferences, making the legal groundwork more challenging for programs that grant presumptions based on race or sex.
Because DOT found the old presumptions unconstitutional, it used the “good cause” exception to make the rule effective immediately without the usual prior public-comment period.
What This Means for DBE / ACDBE Firms & Certifying Bodies
For DBE / ACDBE Firms
Prepare a Personal Narrative that explains, in detail, how specific barriers or disadvantages affected your path (in education, business, financing, etc.).
Be ready to provide documentation: personal net worth statements, financial data, etc.
Review your current certification status and anticipate recertification requirements.
Engage legal, accounting, or consulting expertise if possible—you’ll want your evidence to be solid.
Pay close attention to the timeline: once the UCP reevaluation is complete, you’ll need to have met the new standard or risk losing certification.
For Certifying Agencies / UCPs
You must notify current DBE / ACDBE firms and give them an opportunity to submit new documentation for reevaluation.
You must complete reevaluations as quickly as possible.
During reevaluation, you cannot approve new contract goals or count DBE/ACDBE participation toward goals.
Procedures for decertification under this process are distinct from the normal decertification rules.
You’ll need to revise your goal-setting methods, reporting processes, and the way you use disparity studies.
Risks & Uncertainties
The IFR may face legal challenges. There is tension with standard administrative procedure rules when making such sweeping changes without the usual notice-and-comment.
Some contract or procurement rules are not clearly addressed. It is uncertain how existing contracts or solicitations will be affected.
Transition delays or administrative burden: reevaluating tens of thousands of firms is complex and time-consuming.
Key Takeaways & Action Steps
No more presumptions. All DBE / ACDBE applicants will be judged on individual evidence, regardless of race or sex.
Reevaluation is mandatory. Certified firms must support their eligibility under new criteria or risk decertification.
Pause on goals during transition. Until reevaluation is done, agencies can’t use DBE goals or count DBE participation.
Get documentation ready. For owners: narratives, financials, net worth, etc. For agencies: methodological and reporting work.
Watch for further guidance. DOT, UCPs, legal associations, and industry bodies will issue clarifications and support documents in coming weeks.
Resourceful Links and Sources
Federal Register: Disadvantaged Business Enterprise Program and Disadvantaged Business Enterprise in Airport Concessions Program Implementation Modifications
DBE IFR Guidance (30 September 2025) — DBE IFR Guidance.9-30-2025.pdf
DOT Draft Submission to OIRA (30 September 2025) —Microsoft Word - DBE IFR Draft -for OIRA Submission.Final CLEAN.09-30-2025 (003).docx
American Council of Engineering Companies of Massachusetts (ACEC/MA) — “U.S. DOT Announces Significant Changes to DBE Program,” October 2025 U.S. DOT Announces Significant Changes to DBE Program Effective October 3, 2025 - American Council of Engineering Companies of Massachusetts
McDonald Hopkins — “DOT Interim Final Rule: Sweeping Changes to DBE/ACDBE Certification Rules and Goals,” October 2025
PilieroMazza PLLC — “DOT Ends Race- and Sex-Based Presumptions of Disadvantage in DBE and ACDBE Programs,” October 2025
Comments