Overview

• Effective October 3, the interim final rule removes race and gender presumptions, recasts policies as DBE-neutral/DBE-conscious, and pauses the setting and counting of goals until re-certification finishes.
• State Unified Certification Programs must re-evaluate every certified DBE/ACDBE firm and issue recertification or decertification decisions under the new standard, with modified decertification procedures during this process.
• Applicants and existing firms must submit a personal narrative proving individualized social and economic disadvantage, while the $2.047 million personal net worth cap and 51% ownership and control requirements remain.
• DOT issued the rule without a prior notice-and-comment period, citing constitutional concerns highlighted by litigation and executive actions; the Mid-America case remains stayed with a proposed consent order pending.
• Analysts expect procurement slowdowns and administrative backlogs, and DOT projects roughly $95 million in transitional costs, with public comments due by November 3.