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.