MRMCA Member Alert: Key Changes to the DBE Program (Effective October 3, 2025): A new DOT rule takes effect October 3, 2025, fundamentally altering the way Disadvantaged Business Enterprise (DBE) status is determined. Below is a clear, comprehensive summary of what is changing, why, and what your firm should do.

What Is Changing & Why

• Removal of Race- and Sex-Based Presumptions
  DOT has eliminated the automatic (rebuttable) presumptions that certain racial or gender groups are socially disadvantaged.
• The change is driven by constitutional concerns (equal protection under the Fifth Amendment) following litigation challenging the DBE program’s presumptions.
• The same removal applies to the Airport Concessions DBE (ACDBE) program. Department of Transportation

Individual, Case-by-Case Certification:

• Rather than relying on group-based presumptions, all DBE/ACDBE owners must now demonstrate social and economic disadvantage on an individual basis.
• Each application must include a Personal Narrative with detailed descriptions of personal experiences and barriers faced.
• Narrative must:
  • Identify objective distinguishing factors (e.g., prejudice, bias, systemic barriers) that contributed to disadvantage Department of Transportation
  • Show how those barriers caused economic harm or limited access to opportunities (education, employment, financing, business growth) Department of Transportation
  • Include a current Personal Net Worth (PNW) statement and relevant financial documentation

Reevaluation & Recertification of Existing DBEs:

• All firms currently certified as DBEs or ACDBEs must undergo reevaluation under the new standards. Certifications under the old presumptive regime do not automatically carry forward.
• The decertification process used for normal DBE removals (49 C.F.R. § 26.87) will not apply to this reevaluation route. Department of Transportation
• Firms that satisfy the new standards will be recertified; others may be decertified.

Transition Effects on Contract Goals & Counting Participation"

Until UCPs complete reevaluation:

• Recipients of DOT funding (e.g. state DOTs, transit agencies, airports) may not set DBE/ACDBE contract goals.
• DBE/ACDBE participation under existing certifications cannot be counted toward contract goals.
• Recipients are exempt from certain compliance requirements (e.g. parts of 49 C.F.R. § 26.47 or § 23.57) during this transition period. Department of Transportation

Retained (and Adjusted) Personal Net Worth Cap

• The PNW cap remains, but with key adjustments:
• The rule retains a maximum net worth threshold for DBE owners (excluding certain assets).
• DOT may adjust the cap over time without full rulemaking.

Other Technical and Procedural Updates:

• Certifiers (UCPs) now have more discretion and less prescription in evaluating eligibility under the new rules.
• More rigorous data reporting and transparency requirements for recipients (contractor bid data, utilization, etc.).
• Updates to how DBE/ACDBE “supplier credit” is counted (material suppliers, distributors)
• Virtual site visits and other procedural flexibilities (inherited from COVID-era practices) are formalized.

Risks, Implications, & What Firms Must Do:

• Increased Documentation & Scrutiny
  Applicants will need to present a robust, well-substantiated narrative and supporting evidence. Weak or vague narratives risk rejection or decertification.
• Burden of Proof on Applicant
  The applicant must establish their own disadvantage by a preponderance of the evidence. Certifiers may challenge claims if insufficient or poorly explained. Department of Transportation
• Legal and Financial Consequences for Misstatements
  False or misleading statements on the Personal Net Worth or other required submissions may lead to decertification, civil penalties, or even criminal prosecution.
• Interim Disruption to Goals & Market Certainty
  During the transition period, contractors and agencies cannot rely on existing DBE status for goal setting or counting. This may slow project planning or contracting decisions.
• No Immediate Impact on Active Contracts
  The rule does not require recompeting or altering contracts already awarded (absent specific local or recipient decisions).

MRMCA will update you on any further guidance from Governor Moore's office when we receive it. 

This guidance provides information about important changes that the U.S. Department of Transportation (“Department” or “DOT”) is requiring recipients of financial assistance from the Department to make with respect to the Disadvantaged Business Enterprise (“DBE”):

USDOT DBE Notice

The Federal Register Announcement:

Disadvantaged Business Enterprise Program and Disadvantaged Business Enterprise in Airport Concessions Program Implementation Modifications

ACEC Announcement:

U.S. DOT Announces Significant Changes to DBE Program Effective October 3, 2025