Socioeconomic Programs Status Page Two Disadvantaged Business Enterprise (DBE) Program
On October 3, 2025, the U.S. Department of Transportation issued an interim Final Rule (IFR) modifying the Disadvantaged Business Enterprise (DBE) Program. The IFR significantly changes how DBE eligibility is determined, certified, and counted for federally assisted transportation projects. Historically, the DBE program relied on race- and sex-based presumptions of social disadvantage. The IFR eliminates those presumptions and requires all applicants to demonstrate social and economic disadvantage through individualized evidence, evaluated on a case-by-case basis. Key elements of the Interim Final Rule: • Elimination of Race-and Sex-Based Presumptions Firms owned by women or minority individuals are no longer presumed to be socially disadvantaged. All DBE applicants must now provide individualized documentation demonstrating social and economic disadvantage. • Mandatory Recertification of Existing DBEs All currently certified DBE firms must be reevaluated under the new eligibility standards before they may continue to be counted for federal reporting and DBE goal attainment purposes. • Temporary Impact on Goal Setting and Participation Counting During the transition period, while Maryland’s Unified Certification Program (UCP), administered by the Department of Social and Economic Mobility (DoSEM), conducts recertifications: o DBE contract goals may not be established on new federally assisted contracts; and o DBE participation may not be counted toward overall program goals. Rationale for the Rule: USDOT issued the IFR to address constitutional and legal concerns associated with race- and sex-based presumptions in federal contracting programs, and to ensure continued compliance with equal protection principles. Implications for MDTA: The IFR has immediate and direct effects on the ability of federal recipients to monitor, measure, and report DBE participation. Because all DBE firms must be evaluated under revised eligibility standards, there is a transitional period during which existing certifications cannot be relied upon for goal crediting. For MDTA, the IFR results in several operational impacts: • Coordination with Maryland’s UCP is required to implement DBE recertifications under the new standards. • DBE program documents, procedures, and outreach efforts must be updated to reflect individualized eligibility determinations. • Contract-level DBE goals and program-wide participation cannot be meaningfully monitored during the transition period. Monitoring systems that rely on confirmed DBE certification—such
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