If you are currently certified as a Disadvantaged Business Enterprise (DBE), you were notified that, as of October 3, 2025, the U.S. Department of Transportation (DOT) implemented an Interim Final Rule (IFR). This rule made significant changes to the Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) programs.
Major Change: For nearly 40 years, certain groups—specified racial or ethnic minorities and women—were automatically presumed to be socially disadvantaged. That presumption is now gone. In the future, every applicant must prove disadvantage on an individualized, case-by-case basis.
Key Changes in the Interim Final Rule
- No more group presumptions. All applicants must now submit a personal narrative and possibly proof (TBD) showing what barriers have given them a disadvantage against similar individuals or firms.
- Reevaluation of current firms. Every existing DBE and ACDBE will be reevaluated by their state’s Unified Certification Program (UCP).
- Pause on certification. The program will temporarily pause until reevaluations are complete. Some may lose certification altogether if they cannot meet the new standards.
- Impact on opportunities. DBE participation will not count toward contract goals during the transition period, and new goals cannot be set until the reevaluations are finalized.
See the ruling HERE.
Potential Impact
Some firms that have built their pipelines and partnerships around DBE/ACDBE certification will, at the very least, face disruption. Projects that once contributed to DBE goals may be paused. And firms risk losing visibility or access to subcontracting opportunities until they are recertified.
What Businesses Should Do Now
- Start gathering evidence to support your narrative. Begin organizing materials before reevaluation notices arrive. Gather documentation and examples that demonstrate barriers you’ve faced—such as challenges with financing, contract access, or systemic obstacles.
- Stay proactive with your Unified Certification Program (UCP). Continue to check their website and ask questions to stay informed about the process.
- Seek expert guidance. With the added burden on applicants, professional support can help ensure your narrative is strong and well-documented.
- Expand your reach. Don’t rely solely on DBE/ACDBE certification
Possible Additional Delays Due to the Federal Shutdown
State agencies and UCPs may be slowed in rolling out the reevaluation process while the federal government is under a shutdown, and simply while they figure out how to tackle reevaluating thousands of certified firms. Check with your local certifier for details and updates.
A Difficult Transition—But Not the End
The good news is that the program hasn’t gone away, BUT the quicker it is re-activated, the better. Stay informed and reach out to your representatives HERE, letting them know about the strain this places on Small Businesses.
A New Chance for Other Businesses
While these changes are disruptive for many, they may create new opportunities for others. Businesses that previously did not qualify under presumptions may now enter the programs by showing individualized disadvantage. But again, the program must be active before anyone can benefit.
We Can Help
This transition WILL reshape the DBE/ACDBE landscape. If you’re unsure how to approach the reevaluation process, develop your narrative, or strengthen your application, you don’t have to go it alone. Our team has supported small businesses with DBE and 8(a) requirements for over 18 years. If you need help preparing your personal narrative or navigating the reevaluation process, we are ready to help.
Although we can’t be sure of the date(s) and processes each state will implement for review, we will follow the updates, understand the regulations and landscape, and can help you prepare.
Note: This post summarizes key elements of the DOT Interim Final Rule effective October 3, 2025. It is provided for informational purposes only and should not be considered legal advice.
