DOT Interim Final Rule: Sweeping changes to the DBE/ACDBE certification rules and goals  

On September 29, 2025, the U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) that will impact every Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certified firm nationwide, as well as those currently seeking certification.

The rule comes in response to a recent federal court decision that barred the U.S. DOT from requiring race- and gender-based presumptions. Under the IFR rule, all applicants—regardless of race, ethnicity, or sex—must now provide evidence of social and economic disadvantage. All those currently certified DBE/ACDBE and all new applicants must be reevaluated under the new standards, which requires the submission of a personal narrative with individualized proof of social disadvantage. All eligibility determinations will be made on a case-by-case basis for both DBE and ACDBE programs.

What new applicants and currently certified firms must be prepared to do

Under the IFR, every currently certified DBE/ACDBE must be reevaluated under the new standards. All new applicants must apply under the new standard in 49 CFR 26.67, which requires the submission of a Personal Narrative (PN) with individualized proof of social disadvantage. The narrative should be specific, with all required details, and it can be subject to verification. The PN is a central and required component of the application. Given the heightened scrutiny and individualized review, applicants should approach the narrative with care and seek guidance from experienced legal or consulting professionals for compliance.

The IFR continues to require submission of a Personal Net Worth statement (PNW) as part of the application, and it is now also required for recertification. The USDOT has emphasized that all information provided must be accurate and complete. Providing false or misleading information on the PNW form can result in immediate decertification, civil penalties, and potential criminal prosecution. McDonald Hopkins strongly recommends that you consult with your attorneys and accountants before submitting your PNW statement to ensure full compliance and to understand the legal consequences of misrepresentations.

Unified Certification Program

If you have multiple DBE certifications through the Unified Certification Program (UCP), new standards and rules now apply for continued UCP certification. In addition, new procedures will be implemented, including notifying all currently certified firms and giving them the opportunity to submit documentation demonstrating eligibility under the new requirements.

Until each UCP completes the reevaluation process, recipients covered by that UCP may not set DBE/ACDBE contract or concession goals, nor count DBE/ACDBE participation toward goals. Recipients are not subject to “failing to meet goals” compliance during this period and are not required to update overall goals until reevaluations are complete.

The IFR is effective as soon as it is published in the Federal Register. Notably, the preamble to the IFR and accompanying guidance indicate that DOT anticipates transitional impacts, including potential temporary disruptions in certifications and counting, while reevaluations proceed. The public comment period will close 30 days after publication.

Action steps now

All current DBE/ACDBE firms should prepare a current PNW statement and PN statement in accordance with the new criteria and gather all supporting documentation. Following all criteria for continued eligibility is critical. Consulting with legal professionals, accountants, and others knowledgeable about the DBE program is essential to navigate these changes successfully and ensure compliance.

For more information, please contact Michelle F. Kantor, Chair Government Contracting Group.