Regulatory Alert: DOT Publishes Final Rule to Update DBE and ACDBE Programs

September 26, 2026

Yesterday, the U.S. Department of Transportation (DOT) published a final rule that makes further amendments to the regulations governing the Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) programs. The rule addresses feedback DOT received in response to the interim final rule (IFR) that the department issued in October 2025. Under the IFR, DOT eliminated the race- and sex-based presumptions in the programs, a key principle for determining whether firm owners are considered disadvantaged for purposes of DBE and ACDBE certification. In addition, DOT required each certified DBE and ACDBE firm to be reevaluated in accordance with newly established criteria.

The further amendments generally fall into two categories. The first category provides clarifications for firms and Unified Certification Programs (UCPs) on the new criteria used to determine whether a firm owner is considered “socially and economically disadvantaged” for purposes of DBE/ACDBE certification. The second category includes several changes to the reevaluation process. Most notably, DOT set December 24, 2026, as the deadline for UCPs to complete their firm reevaluations, subject to one possible 90-day extension. This means airport sponsors should be prepared to resume compliance with the DBE and ACDBE programs by the end of the year if the appropriate UCP has not already completed its reevaluations.

The further amendments made by DOT to the DBE and ACDBE programs in the final rule are effective Friday, September 25. You can read the DOT final rule here. We highly encourage the individuals responsible for DBE and ACDBE program compliance at your organization to review the rule issued by DOT.

Background. Airport sponsors must comply with a series of assurances as a condition for receiving a federal grant under the Airport Improvement Program or another applicable federal financial assistance program. Since the 1980s, these assurances have required airport sponsors to administer DBE and ACDBE programs. The DBE Program requires airport sponsors to set goals for participation by contractors that are small businesses owned and controlled by socially and economically disadvantaged individuals. The ACDBE Program imposes similar requirements on airport concessionaires.

Over the past few years, the programs’ race- and sex-based presumptions have been subject to scrutiny. These presumptions provide that certain individuals (e.g., women and members of certain racial and ethnic groups) are presumed to be socially and economically disadvantaged. In 2024, in Mid-America Milling Co. v. DOT, a federal court in Kentucky determined that the race- and sex-based presumptions are likely unconstitutional under the Due Process Clause. In response, the court issued a preliminary injunction prohibiting DOT from mandating the use of the presumptions with respect to contracts on which the two plaintiffs in the case bid.

DOT’s 2025 DBE/ACDBE Interim Final Rule. In October 2025, DOT issued the IFR that made significant changes to the DBE and ACDBE programs. The IFR was in response to Mid-America Milling Co. and related court cases, several executive orders from President Trump, and a determination from the Department of Justice that the presumptions were unconstitutional. The IFR made major changes to the programs, which included:

• Eliminating the race- and sex-based presumptions in the DBE and ACDBE programs;
• Establishing new criteria for determining whether an individual is “socially and economically disadvantaged.” Under the IFR, individuals are only considered socially and economically disadvantaged if they can affirmatively demonstrate—through a personal narrative—the existence of “disadvantage” based on their own experiences and circumstances and without regard to race or sex;
• Requiring each DBE and ACDBE firm to be reevaluated using the newly established criteria, although UCPs were only required to complete reevaluations “as quickly as practicable”; and
• Pausing certain requirements for airport sponsors, such as setting contract goals and counting participation, while the UCPs conduct reevaluations.

You can read additional information about the IFR in AAAE’s October 3, 2025 Regulatory Alert. The IFR went into effect immediately upon issuance. In November 2025, AAAE submitted comments in response to the IFR, raising concerns that the lack of advanced notice regarding the changes created significant confusion for ongoing procurements and disrupted airport infrastructure projects.

 

Summary of DOT’s DBE/ACDBE Final Rule. Under DOT’s final rule, the department made several additional amendments to the regulations governing the DBE and ACDBE programs in response to comments received on the IFR. These further amendments generally fall into two categories:

• Clarifications on Certification Standard: The IFR required all firms to prove social and economic disadvantaged ownership through an “individualized determination” (using a personal narrative) rather than relying on a presumption that the firm owner is disadvantaged by being part of a particular group. DOT’s final rule clarifies that an applicant may discuss race- and sex-based discrimination in their personal narrative, and the UCP may consider those experiences. However, UCPs may not rely on sex- or race-based presumptions of disadvantage when making their certification decisions. DOT also clarified the standard for UCPs to determine the existence of “economic disadvantage” and confirmed it remains a standalone requirement for DBE and ACDBE certification.

• Changes to Reevaluation Process: While the IFR required UCPs to reevaluation each DBE and ACDBE firm using new standards, DOT never established any deadline, creating uncertainty for airport sponsors when they would be expected to resume setting contract goals and counting participation. DOT’s final rule addresses this problem by setting December 24, 2026, as the deadline for UCPs to complete their reevaluations, subject to one possible 90-day extension. DOT also established processes for UCPs to (a) notify the department when their reevaluations are completed and (b) disqualify firms that do not provide the UCP with the appropriate documentation for them to be reevaluated under the new certification standards.

What’s Next? Airport sponsors should carefully monitor when their appropriate UCP has completed the reevaluation process, which will require the sponsor to resume setting contract goals and counting participation. DOT has published the “UCP Directory and Certification Reevaluation Status” webpage, which allows airport sponsors to monitor the states that have completed firm reevaluations. About 17 states have concluded their reevaluations as of mid-September. However, all UCPs must complete their reevaluations no later than December 24, 2026, or March 24, 2027, if the UCP obtains a one-time DOT-approved extension.