Recent Changes to the Disadvantaged Business Enterprise and Airport Concession Disadvantaged Business Enterprise (DBE and ACDBE) Programs
EFFECTIVE OCTOBER 3, 2025
The United States Department of Transportation issued an interim final rule (IFR) that amends the Federal Regulations that govern the DBE and ACDBE Programs. These amendments change the definition of “socially and economically disadvantaged individual” to remove the race- and sex- based presumptions. The new regulations will require small business concerns to demonstrate social and economic disadvantage based on their own experiences and circumstances without reliance in whole or in part on race or sex.
SCDOT is required to reevaluate all currently certified DBE/ACDBE firms, to recertify those that meet the new certification standards, and to decertify any firm that does not meet the new certification standards. All firms will temporarily lose DBE/ACDBE certifications until the reevaluation process is complete. The decertification procedures found at 49 C.F.R. § 26.87 do not apply to any decertification decisions under this process. Here’s the official guidance: Guidance.10-03-2025.pdf
SCDOT is working as quickly as possible to complete the reevaluation process mandated by the changes in federal regulations. Additional guidance regarding the reevaluation process and any documents needed is forthcoming.
Current DBE Reevaluation Status
- SCUCP has developed the reevaluation process and is currently awaiting final review from leadership, FHWA and the aviation association. Additional details forthcoming.
New Applications for DBE Certification
- New applications for DBE certification are currently suspended. New applications will be required to submit a personal narrative in addition to meeting certification standards at 49 CFR Part 26, Subpart D. USDOT has stated that the Uniform Certification Application and the Declaration of Eligibility form will be updated to reflect the regulatory changes to the DBE program issued in the Interim Final Rule (IFR) on October 3, 2025. New applicants must use these forms once they become available.