Since Oct. 3, 2025, the federal Disadvantaged Business Enterprise program has been in a state of enhanced chaos due to an Interim Final Rule, which effectively de-certified all existing DBE firms.
The DBE program is a component of most federally funded transportation projects, with goals assigned at the time of procurement for a certain percentage of the contract value required to go to a certified DBE firm. These are prevalent on contracts for both construction and professional services.
The current federal administration has taken a brash approach to removing and dismantling all forms of Diversity, Equity and Inclusion programs, and the DBE program is no exception. Up until this IFR in October 2025, obtaining a DBE certification was relatively straightforward, as race and gender were considered objective measures of disadvantage, along with personal net worth of the owner(s) not exceeding a defined threshold.
The IFR removes all race and gender from consideration and requires the business owner to prove social and economic disadvantage via a personal narrative without using either race or gender as criteria. The narrative must include specific examples of disadvantage, the impediment it created and the harm that resulted.
NDOT to Start Accepting Reevaluation Applications
The Nevada Department of Transportation will start the reevaluation of previously certified DBE firms on June 22, with prioritized reviews conducted through July 23, according to a FAQ document dated June 1, 2026. New DBE/Airport Concessions DBE applications will be accepted starting July 27.
The online DBE directory for Nevada shows 172 certified DBE firms. Five shows that reevaluation has begun. All five are certified in other states; Nevada is the reciprocal certifying agency. According to Nexie Rose, Small Business Programs Specialist, NDOT, there is an expectation that fewer firms will pursue reevaluation. If fewer firms are available to perform work, the associated goals on projects would likely be lower, but the final outcome will depend on how many firms complete their recertification with the State of Nevada.
Long Term Surface Transportation Bill Includes DBE Program
The long-term outlook for the DBE program is tied to the federal Surface Transportation Reauthorization Bill. The current bill expires September 30 and has long been known to be the harbinger of whether the DBE program would continue to exist in any form. On May 17, the House Transportation & Infrastructure Committee chairs released the reauthorization bill that would begin on Oct. 1, 2026, titled the BUILD America 250 Act.
In the bill, the DBE program is reauthorized, albeit with changes. The term “minority- and women-owned business” will be replaced with “socially and economically disadvantaged individuals,” mirroring the IFR.
Additionally, the reauthorization bill will set a national, aspirational goal of at least 10% of federal funding to be directed to small businesses owned and operated by socially and economically disadvantaged persons. Lastly, the U.S. Department of Transportation will be responsible for creating objective criteria for state certifying agencies to evaluate whether the business owner qualifies as disadvantaged.
Project Goals Remain on Hold Until Reevaluations Are Complete and New Goals Can Be Established
The shock to active projects and procurements that traditionally had DBE goals was immediate. When the IFR came out, local government appeared to be just as surprised as DBE firms by the immediacy of the action. Existing project contracts were also thrown into a tizzy with confusion about how or whether to continue on with existing contract terms when contradictory directives are received.
In October 2025, four NDOT projects had DBE goals associated, but only one had the DBE goal removed via an addendum. According to NDOT’s website, no goals on projects can be monitored, enforced or implemented until the reevaluation period is complete. Rose anticipated project goals would not come back until ‘early 2027, as there are several required steps under the IFR guidelines that must be completed before goals can be established.’
