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Changes to the Federal DBE Program:

What You Need to Know

Read DelDOT's Full Statement Here

To Our Valued DBE Partners,
The U.S. Department of Transportation ("USDOT") has issued new guidance and an Interim Final Rule (dated September 30, 2025) regarding the Disadvantaged Business Enterprise ("DBE") program. These changes stem from the recent court ruling that determined the use of race- and sex-based presumptions of disadvantage for determining DBE eligibility do not comply with constitutional requirements.

The Interim Final Rule goes into effect immediately upon publication in the Federal Register (October 3, 2025). While there is a 30-day public comment period, USDOT determined that the unconstitutionality of the prior framework justified immediate implementation.

Key Points of the Rule

• Loss of Current Certification: Every firm currently certified as a DBE will lose its certification and must undergo reevaluation.
• New Requirements: Firms will be required to submit updated documentation and personal narratives to demonstrate eligibility for certification as a DBE.
• Agency Goals: Agencies, including DelDOT, must revise their DBE goals in alignment with the new eligibility standards.

What Is Not Affected

Importantly, it does not appear that existing contracts will be impacted. The guidance does not require agencies to recompete or reopen current awards. Instead, the focus is on recertification moving forward and the resetting of future goals. DelDOT is working with USDOT to confirm this understanding.

We understand how unsettling this news is, particularly for firms that have invested years of dedication and hard work into building their businesses. Please know, DelDOT is reviewing the guidance carefully and working with federal partners to confirm and clarify all details. We are also coordinating with other states to determine any collective next steps that can be taken.

We are committed to keeping you informed with timely updates as the process unfolds. Additionally, we will provide resources and support to help you navigate the recertification process successfully. If you have any questions, please reach out to our DBE Office at DOT.DelawareDBE@delaware.gov