DBE Resources

USDOT Interim Final Rule: DBE Programs

Effective October 3, 2025, the U.S. Department of Transportation (USDOT) issued an Interim Final Rule (IFR) that eliminates race- and sex-based presumptions in the Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) programs.

Spanning nearly 40 years, the DBE and ACDBE programs are small business initiatives intended to level the playing field for businesses seeking to participate in federally assisted contracts and in airport concessions.

The IFR removes sex and race-based presumptions of social and economic disadvantage based on a 09/23/2024 Eastern Court of Kentucky determination that the DBE Program’s statutory race and sex-based presumptions likely do not comply with the Constitution’s promise of equal protection under the law. 

What Does This Mean?

1. As of now, there are no DBE percentage goals on federally funded projects.
2. All firms seeking DBE certifications must be recertified. They must now prove social and economic disadvantage on an individual basis.
3. This includes those seeking certification and those who currently hold a certification will be reevaluated, and those who do not demonstrate social & economic disadvantage will be decertified.
4. It is unclear what the process of recertifying will look like.
5. Current contracts remain in place. DBEs and ACDBEs with existing contracts or subcontracts should not be removed. Prime contractors and consultants should honor existing agreements with DBE and ACDBE subcontractors, consistent with contract provisions, nondiscrimination law, and Maryland contract law.
6. Maryland’s Minority Business Enterprise (MBE) program is not affected by this federal rule.

Click here to view the IFR.

Click here to view MDOT's statement.

Unified Certification Programs (UCPs) must reevaluate the eligibility of existing DBEs. USDOT provided a guiding document about this process.

Click here to view the guidance document.

The General Counsel of USDOT created a document to provide clarity to the public regarding existing requirements under the law or agency policies in areas of contracting, certification re-evaluation, goal setting and counting, new certification applications, and transit vehicle manufacturers. 

Click here to view the FAQ document.

American Road & Transportation Builders Association (ARTBA) provided a summary of USDOT’s FAQs and what this means for current contracts, as well as brief information on commercially useful function, prompt payment, and unified certification programs. 

Click here to view ARTBA's FAQ page.

MTBMA Webinar Resources

On November 13, 2025, MTBMA hosted a webinar reviewing the DBE IFR. The session featured two experts: Christopher Lawson, a recently retired Federal Highway Administration (FHWA) executive with over 30 years of experience in public service, and Scott A. Livingston, a leading authority on MBE/DBE compliance and procurement law in Maryland.

Key takeaways from the webinar included: reviewing the immediate removal of all DBE goals on federally funded projects, with the certification and goal-setting processes now being redesigned to comply with the new IFR. Firms are encouraged to start preparing for new documentation standards, which will be required under the revised rules. Prime contractors were advised to review their DBE partners' certification status, maintain records of outreach and good-faith efforts, and watch for any temporary bid language adjustments in upcoming RFPs. DBEs are urged to contact UCP/MDOT for re-certification under the new standards, prepare personal narratives and documentation proving their disadvantage, and stay updated by following MTBMA and the Maryland Department of Social & Economic Mobility. Additionally, DBEs were advised to expect further MDOT guidance on re-evaluation timelines.

Review the webinar slides here.

Watch the webinar recording here.

We will be hosting another webinar as more information comes out. In the meantime, watch MDOT and DOSEM's website for guidance on how to recertify.

Please note: this summary is based on information released by USDOT and MDOT and is not intended as legal advice. Contractual obligations may vary, and members should consult counsel regarding how these changes affect their specific circumstances.