Updates on the Disadvantaged Business Enterprise (DBE) Program

The Disadvantaged Business Enterprise (DBE) program is undergoing one of the most substantial restructurings in its history following federal regulatory changes and legal developments affecting how state transportation agencies implement DBE goals and certification standards. These updates have direct implications for small, disadvantaged firms seeking participation on federally assisted transportation projects.

Background of the DBE Program

The DBE program, established under 49 C.F.R. Part 26, is a federal initiative designed to support socially and economically disadvantaged business owners in competing for contracts funded by the U.S. Department of Transportation (USDOT). Participating firms must be certified through a Unified Certification Program (UCP) and historically could rely on race or gender presumptions to establish social disadvantage.

Federal Policy Shifts Impacting DBE

On October 3, 2025, the U.S. Department of Transportation issued an Interim Final Rule (IFR) that fundamentally alters the DBE program’s eligibility criteria. The key change removes the longstanding race- and gender-based presumptions previously used to classify individuals as socially and economically disadvantaged. Under the new rule:

• DBE certification must be established through individualized evidence of disadvantage, not by demographic presumptions.

• Firms must submit a detailed personal narrative and financial documentation proving that economic barriers and systemic impediments have negatively impacted business success.

• DBE certification applications, including those of currently certified firms, will be reevaluated under the new legal standards.

  
  

This regulatory change is one of the cases of constitutional scrutiny of affirmative action and disadvantage-based certification programs at the federal level, particularly following a 2024 federal injunction that challenged DBE race- or gender-based determinations.

As a result of the IFR, state UCPs (including the Ohio Department of Transportation) are currently instructed to remove DBE participation goals from affected contracts until recertification under the revised standards is complete. This action temporarily suspends the ability to count DBE participation toward contract goals on upcoming projects advertised with DBE targets.

For DBE updates from the Ohio Department of Transportation, visit DBE Program Injunction | Ohio Department of Transportation. For DBE updates in your area, check your state's DOT for more information.

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