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Final Rule Summary
May 1, 2024

U.S. DOT Updates DBE Program: Removal of Race- and Sex-Based Eligibility and Other Key Changes

On September 30, 2025, the U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) removing the race- and sex-based rebuttable presumptions for social disadvantage status in the Disadvantaged Business Enterprise (DBE) Program. In effect, this eliminates race- and sex-based eligibility from the DBE Program. The IFR has a limited public comment period of 30 days required by the Rulemaking process and went into effect on October 3, 2025 when it was published in the federal register.

This significant change follows several key developments, including the preliminary ruling in the Mid-America Milling Company (MAMCO) v. U.S. DOT federal case and recent Executive Orders that restrict Diversity, Equity, and Inclusion (DEI) policies and programs.

Under the revised rule, the DBE Program will now require business owners to submit both personal net worth documentation and a Personal Narrative (PN) to establish social disadvantage based on individualized proof.

These changes broaden the DBE Program’s scope, allowing any small business owner to qualify if they can demonstrate social disadvantage through personal experiences. The DOT has also introduced new terminology: DBE-Conscious and DBE-Neutral. These will replace the previous terms Race- and Sex-Conscious and Race- and Sex-Neutral.

The IFR provides some guidance for how agencies should proceed with DBE Program administration. This includes requiring Unified Certification Programs (UCPs) to reevaluate all existing DBEs through the submission of a PN (section 26.111) and halting the setting or counting of DBE participation toward program goals until the reevaluation process is complete (section 26.55(i)).

GCAP will continue to monitor updates related to this rule change and will share a copy of the Final Rule once it is published. In the meantime, we’ve included copies of the Interim Final Rule and the DOT Office of Civil Rights Guidance Letter for reference.

GCAP can help support you in navigating these new DBE requirements, please Contact Us at your convenience.

A close up picture of the United States Department of Transportation logo on a podium.
Immediate Actions Required by Agencies
  • Update DBE/ACDBE Program Language in solicitations.
  • Remove Contract Goals from new solicitations.
  • Pause Counting DBE/ACDBE Participation on existing contracts.
  • Certifying Agencies Only: Reevaluating eligibility of all existing DBE and ACDBE firms for recertification.
CLICK TO VIEW DBE INTERIM FINAL REPORT (IFR) SIGNED
CLICK TO VIEW DBE IFR GUIDANCE

Check Out More Compliance Buzz!

October 8, 2025
U.S. DOT Updates DBE Program: Removal of Race- and Sex-Based Eligibility and Other Key Changes
On September 30, 2025, the U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) removing the race- and sex-based rebuttable presumptions for social disadvantage status in the Disadvantaged Business Enterprise (DBE) Program. In effect, this eliminates race- and sex-based eligibility from the DBE Program. The IFR has a limited public comment period of 30 days required by the Rulemaking process and went into effect on October 3, 2025 when it was published in the federal register.
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May 1, 2024
Final Rule Summary
On April 9, 2024 the USDOT announced various changes and much needed modernization to the DBE Program. GCAP prepared a table summarizing key changes.
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March 25, 2024
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This article highlights one of Jonathan Stutz's key friendships, emphasizing the importance of inclusivity in building relationships with people from diverse backgrounds. It illustrates how connecting with individuals different from oneself can lead to personal growth, expanded perspectives, and a deeper understanding of others.
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Brittany Yamagata
Brittany Yamagata
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