USDOT Proposes Ending Key Provisions of DBE Program

USDOT filed a motion in the United States District Court for the Eastern District of Kentucky, May 28, to remove race- and sex-based presumptions from its Disadvantaged Business Enterprise (DBE) program.

Established decades ago, through a series of legislative and regulatory initiatives, the DBE program was designed to remedy discrimination in transportation contracting. Recent litigation, including the Mid America Milling and Nuziard cases, have challenged the federal program’s constitutionality.

Under the terms of the proposed settlement, USDOT will prohibit federal aid funding of projects incorporating DBE contract goals based on those presumptions. However, the settlement is not final. It must receive approval from the U.S. District Court. The District Court is likely to consider arguments from several organizations and companies that support the DBE program, many of which recently intervened as parties in the litigation.

While the proposed settlement pertains to the federal DBE program, it does not pertain to similar laws enacted at the state and local level. APTA requests USDOT issue clear guidance regarding the implications of this filing. APTA seeks to ensure that federally funded projects continue to operate efficiently and effectively for all who are impacted.

The DBE program enjoys robust support from agencies, organizations, and members who rely on contractor networks to deliver public transportation. APTA President and CEO Paul P. Skoutelas stated, “Public transportation depends on a broad array of contractor networks to deliver important projects and services to our communities. The DBE program is about small businesses and expands opportunities while providing access to the full range of capabilities needed to build and maintain our public transportation systems.”