The U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) that fundamentally alters the Disadvantaged Business Enterprise (DBE) program on October 2, 2025. Effective immediately all existing DBE certifications are now in a suspended state.
The guidance from the DOT presents significant changes to transportation companies who have participated in DBE, the most significant of which is the elimination of race- and gender-based presumptions of social and economic disadvantages. Previously, women and members of certain racial and ethnic groups were presumed to be disadvantaged; now, every applicant must individually demonstrate social and economic disadvantage through a written personal narrative and a current Personal Net Worth statement.
Effective Date and Transition
The IFR was published in the Federal Register on October 3, 2025, and became effective immediately.
- All existing DBE certifications are now in a suspended state.
- Firms remain certified in name, but their participation cannot be counted toward DBE goals until they are reevaluated under the new criteria.
- Airports and other sponsors cannot set new DBE goals during this interim period.
Potential Impact on Companies
Firms currently certified as DBE must undergo reevaluation to demonstrate individual disadvantages before their participation can be counted toward program goals.
- New applicants must follow the individualized certification process from the outset.
- The transition period introduces uncertainty for firms, as participation in federally funded transportation projects may be temporarily affected until reevaluations are complete.
- Joint venture partners and primes can continue to operate under existing agreements, but DBE participation will not count toward program goals until reevaluation is finalized.
Key Takeaways for Private Company Owners
The removal of presumptions means that all owners must prepare detailed documentation to prove social and economic disadvantages.
- Companies should anticipate delays in certification and participation counting during the reevaluation period.
- The regulatory change may be subject to legal challenges, and further updates may follow as the rule is implemented.
Aldrich Insights
Owners of private companies participating in federally funded transportation projects should review their DBE status and prepare for the new individualized certification requirements.
- Begin gathering necessary documentation, including personal narratives and net worth statements, to expedite the reevaluation process.
- Monitor DOT and airport sponsor communications for updates on the reevaluation timeline and any additional guidance.
