October 8, 2026
COMTO Notes from The Hill: USDOT Finalizes Changes to the Disadvantaged Business Enterprise Program Small Business Impact and Deadline for Re-Evaluation
Washington, DC – Small businesses have until the end of the year to file for re-evaluation under the U.S. Department of Transportation's (USDOT) Final Rule. The regulation makes significant changes to the Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) programs. Published September 25, 2026, the rule finalizes key provisions of USDOT’s October 2025 Interim Final Rule and establishes new requirements for determining social and economic disadvantage under 49 CFR Parts 23 and 26.
For transportation agencies, airports, small businesses, prime contractors, and other industry partners, the Final Rule represents a fundamental change in how eligibility for the federal DBE program is determined.
What Changed?
Under the Final Rule, USDOT has eliminated the use of race- and sex-based presumptions of social and economic disadvantage in the DBE and ACDBE certification process.
Instead, business owners must establish social and economic disadvantage individually and on a case-by-case basis.
The change does not eliminate the federal DBE or ACDBE programs. Rather, it changes the standards used to determine which firms qualify to participate.
Existing DBEs Must Be Reevaluated
A particularly important provision of the Final Rule applies to firms that are already DBE- or ACDBE-certified.
Existing firms are not automatically grandfathered into the revised program. Unified Certification Programs (UCPs) must reevaluate currently certified firms using the new individualized standard.
As part of that process, applicable business owners must provide documentation demonstrating individual social and economic disadvantage, including a Personal Narrative and an updated Personal Net Worth Statement.
The Personal Narrative must provide specific evidence of barriers or economic hardship experienced by the owner and explain how those circumstances adversely affected the owner’s advancement or access to opportunities.
December 24, 2026 Deadline
The Final Rule establishes a December 24, 2026 deadline for UCPs to complete the required reevaluations.
USDOT may grant a one-time extension of up to 90 days when a UCP demonstrates good cause.
This compressed implementation period makes immediate communication between certifying agencies and DBE firms especially important. Businesses should closely monitor communications from their certifying UCP and respond promptly to requests for information.
Impact on DBE Goals
The reevaluation process also has immediate implications for federally assisted contracting.
During the transition, recipients cannot set DBE contract goals or count DBE participation toward overall goals until the applicable UCP completes its reevaluation process under the revised requirements.
Once reevaluation is completed, agencies can resume implementation of their DBE programs using the pool of firms determined to be eligible under the new standards.
This means the pace and outcome of UCP reevaluations could have significant effects on DBE availability, contracting opportunities, project delivery, and the small-business marketplace across the transportation industry.
What DBE Firms Should Do Now
COMTO encourages currently certified DBE and ACDBE firms to take immediate steps to understand the new requirements.
Firms should carefully review communications from their UCP; understand the Personal Narrative and Personal Net Worth requirements; begin gathering documentation that demonstrates specific barriers, denied opportunities, or economic harm; meet all UCP submission deadlines; and maintain records of all materials submitted during the reevaluation process.
Firms operating in multiple states should also pay particular attention to the interstate certification provisions. Under the revised framework, the Jurisdiction of Original Certification generally conducts the reevaluation, reducing the need for firms to duplicate the process in every jurisdiction where they are certified.
What Transportation Agencies and Industry Partners Should Consider
Transportation agencies, airports, prime contractors, consultants, and other industry partners should prepare for changes in the composition of DBE directories and the availability of certified firms.
Agencies should prioritize clear communication with the small-business community and ensure that firms understand both the new federal requirements and applicable deadlines.
Prime contractors should also monitor changes to DBE directories and reassess their small-business and subcontractor pipelines as UCPs complete reevaluations.
USDOT is also maintaining a live USDOT is also maintaining a live UCP Reevaluation Status page showing whether each state/territory has completed its process. https://www.transportation.gov/UCPstatus
You can learn more here: DBE_Final Rule_FAQs 09-28-2026_0.pdf