Government Contracting Guide · Transportation
The DBE program changed. Here is what to do now.
The 2025 interim rule, the 2026 final rule and the reevaluation deadline.
The DBE program, the U.S. Department of Transportation’s Disadvantaged Business Enterprise program for federally funded highway, transit and airport work, changed in October 2025 and again in September 2026, and every small firm in transportation should know what the new rules require.
What the DBE program does
State departments of transportation, transit agencies and airports that receive federal funds run DBE programs under 49 CFR Part 26 (and the airport concession version, ACDBE, under Part 23). Certified DBEs are small firms owned and controlled by socially and economically disadvantaged individuals. Agencies set DBE goals, and prime contractors on federally funded projects have used certified DBEs as subcontractors, suppliers and truckers to meet them. Each state’s Unified Certification Program certifies DBEs once for every agency in the state.
October 2025: the interim final rule
On Oct. 3, 2025, the Department of Transportation published an interim final rule that removed the presumption that women and members of certain racial and ethnic groups are socially and economically disadvantaged. From then on, every owner must show disadvantage individually, through a personal narrative supported by facts. The rule required every currently certified DBE and ACDBE to be reevaluated under the new standard, and suspended DBE goal reporting and compliance monitoring until each state finished its reevaluations.
September 2026: the final rule
After public comment, the department published a final rule on Sept. 25, 2026 that keeps the race- and sex-neutral approach with limited clarifications. An applicant may still describe how race or sex contributed to the disadvantage they experienced, but no presumption applies. The final rule set Dec. 24, 2026 as the deadline for certifying agencies to finish reevaluating existing DBEs. Early reports from some states show many firms leaving the program because they did not respond or withdrew, so answering your certifying agency on time matters.
Economic tests that still apply
The economic side of eligibility was updated in 2024 and still applies. An owner’s personal net worth must be under $2.047 million, up from $1.32 million, and retirement assets are now excluded entirely from the calculation. The firm must also be small, with average gross receipts over five years under the program’s cap, which is adjusted for inflation, and the disadvantaged owner must control the business day to day.
Writing a strong statement of disadvantage
The personal narrative is now the heart of a DBE file. Describe specific experiences, with dates and places, that held back your education, employment, access to credit or business opportunities, and explain the economic effect on you and your firm. Keep it factual and organized, attach supporting documents where you can, and make sure it matches your financial records. Many state UCPs publish guidance and sample questions; read them before you write.
What to do now
- If you are a DBEWatch for your UCP’s reevaluation request and answer before its deadline.
- Write your narrativeSpecific, dated, factual, with the economic impact explained.
- Gather financesPersonal net worth statement and tax returns ready for review.
- Keep other doors openState small business, DVBE and local certifications still help.
- Stay close to primesPrimes still need reliable specialty subcontractors.
Transportation work beyond DBE
DBE status helps, but it is not the only way in. Many state DOTs run their own small business programs, transit agencies and airports buy services all year, and large primes always need dependable trucking, traffic control, striping, landscaping, testing, engineering and supply partners. Read planholders lists on big projects, go to outreach events and call the primes who are bidding.
What primes and agencies are doing now
With goal reporting suspended during reevaluation, some agencies have changed how DBE participation appears in their bids, and some primes are reviewing their subcontractor lists. Read each new solicitation for its current DBE language rather than assuming last year’s rules still apply. Primes still need reliable specialty firms to finish federally funded jobs on time, and the firms they trust are the ones that deliver, communicate and keep clean paperwork. Strong relationships with a few primes protect a small firm whatever happens with its certification.
Airports and the ACDBE program
The same changes apply to the Airport Concession DBE program under 49 CFR Part 23, which covers airport restaurants, shops, car rental and other concessions. ACDBE owners must also show disadvantage individually and are being reevaluated. Concession firms should keep their lease and partnership documents organized, because airports review ownership and control closely, and should watch for airport outreach on new concession opportunities as terminals are rebuilt.
Where to get help
Your state’s Unified Certification Program is the first stop for questions about your file. Many state DOTs also fund supportive services programs that help small transportation firms with bidding, bonding, estimating and certification, and Procurement Technical Assistance Centers, now called APEX Accelerators, offer free one-on-one counseling on government contracting.
Take the free Transportation Contracts and DBE workshop in Inksight Courses and Trainings: six narrated lessons, quizzes and a certificate, taught by Kevin Phan. It is part of a 15-workshop series on government contracting, from city hall to federal agencies.
Key takeaways
- Since Oct. 3, 2025, DBE disadvantage must be shown individually, with no race or sex presumption.
- The Sept. 25, 2026 final rule kept that approach.
- Certifying agencies must finish reevaluating current DBEs by Dec. 24, 2026.
- The personal net worth cap is $2.047 million, retirement assets excluded.
- Primes still need small specialty subcontractors, DBE or not.
Frequently asked questions
What is the DBE program?
The U.S. Department of Transportation’s Disadvantaged Business Enterprise program for federally funded highway, transit and airport contracts.
What changed in the DBE program in 2025?
An October 2025 interim rule removed race- and sex-based presumptions of disadvantage and required every DBE to be reevaluated on an individual showing.
When must DBE reevaluations be finished?
By Dec. 24, 2026, under the September 2026 final rule.
What is the DBE personal net worth cap?
$2.047 million, with retirement assets excluded.
Can I still win transportation work without DBE status?
Yes. Many firms win as small businesses or as subcontractors to primes, and state and local small business programs still apply.
Sources
- U.S. Department of Transportation: DBE Interim Final Rule (Oct. 2025)
- Saul Ewing: DOT Finalizes Race- and Sex-Neutral DBE/ACDBE Rule (2026)
- Federal Register: DBE and ACDBE Program Final Rule (2024)
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