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OPINION
Major shift in the DBE program
The DOT’s new rule ends automatic DBE presumptions, requiring individualized proof of disadvantage and immediate recertification for all firms.
T he U.S. Department of Transportation (DOT) has issued an Interim Final Rule (IFR) that fundamentally alters the Disadvantaged Business Enterprise (DBE) program. Effective immediately upon publication in the Federal Register, the IFR removes the race- and gender-based presumptions of social and economic disadvantage that have underpinned the program for more than 40 years.
Robert Jones, CPA, CPCM
This action is a direct response to mounting constitutional challenges, 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 preemptively concluded that the presumption is unconstitutional and acted to overhaul the program without waiting for Congress or the courts to finalize the matter. KEY ELEMENTS OF THE INTERIM FINAL RULE. According to DOT’s signed IFR and accompanying guidance from the Office of Civil Rights:
DBEs will lose certification and must undergo reevaluation. Firms must submit personal narratives and documentation to establish individualized social and economic disadvantage.
■ Burden of proof on firms. Applicants must now prove disadvantage; it will no longer be presumed.
Suspension of DBE goals. Federal funding recipients may not set DBE goals or count DBE participation until reevaluations are complete.
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■ Retention of net worth cap. The Personal Net Worth (PNW) limitation remains in effect.
■ Re-certification required. All currently certified
See ROBERT JONES, page 4
THE ZWEIG LETTER NOVEMBER 3, 2025, ISSUE 1608
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