Washington, DC - As the federal shutdown continues, small businesses learn of major changes to the federal DBE/ACDBE programs. Effective October 3, 2025, the DOT will no longer accept race and gender-based presumptions of social and economic disadvantage regulations that have been the foundation of the federal program over forty years. In doing so, the DOT replaces terms like “race-neutral/race-conscious” with “DBE-neutral/DBE-conscious” frameworks.  

The Interim Final Rule also requires state agencies to set criteria for firms seeking DBE/ACDBE certification, reevaluate any currently certified DBE, to recertify any DBE according to the new standards, and decertify those who cannot meet the new standards.   

The action follows challenges to the program, including a pending federal case in Kentucky, where the court signaled that automatic presumptions of disadvantage may not withstand Fifth Amendment scrutiny. While a consent decree in that case is still pending, DOT has concluded that the presumption is unconstitutional and acted to overhaul the program without waiting for Congress or the courts to finalize the matter. 

At the CBC Transportation Braintrust September 26, there was growing concern for the potential changes to the program. However, the expert panel urged small business to remain nimble and learn to pivot. 

“Don’t give up. These certification programs were never supposed to be the golden ticket,” Tyra Redus former Director of the USDOT Office of Small and Disadvantaged Business Utilization reminded the crowd.  

Redus said there are still opportunities available for small businesses despite changes to the federal DBE program. She encouraged owners to search for jobs in the Small Business Administration's Subcontractors’ Directory.  

COMTO remains committed to supporting our small business members through this transition. The organization will offer a resource hub and trainings on how to best navigate these changes. COMTO’s Small Business Committee and our local chapters will provide guidance on how firms can move through these changes with confidence.