IMPORTANT NOTICE: Update to the Disadvantaged Business Enterprise (DBE) Program
Effective Date: October 3, 2025
On October 3, 2025, the United States Department of Transportation (“U.S. DOT”) issued an Interim Final Rule (“IFR”) implementing changes to its Disadvantaged Business Enterprise (“DBE”) Program regulations, which are applicable to all contracts that are funded, in whole or in part, by the U.S. DOT. The contracts under which the Gateway Development Commission (“GDC”) contractors are performing that receive Federal Transit Administration (“FTA”) funding, therefore, are subject to requirements related to the GDC DBE program, which in turn is implemented pursuant to the U.S. DOT’s DBE regulations.
The IFR bears an immediate effective date as of its publication and states that DBE programs of U.S. DOT federal funding recipients (which includes the GDC DBE program), must update their terms to comply with the revised regulations. In accordance with the IFR, Unified Certification Programs (“UCPs”) must then, on the basis of the revised terms, reevaluate any firm that has applied for DBE status.
The IFR provides that you are not subject to penalties for failure to meet DBE goals set forth at 49 CFR 26.47 while the reevaluation process is underway. Accordingly, GDC will pause enforcement of the DBE participation requirements in contracts until further notice. Further, federal funding recipients are not able to set any contract-specific goals while the reevaluation process is underway consistent with the IFR. Accordingly, GDC will not set new contract goals until further notice.
GDC contractors need not take any further action at this time other than to suspend any reporting requirements under existing DBE participation provisions. Please also note that all generally applicable subcontract provisions in GDC contracts—including those related to prompt payment, GDC audit rights of subcontractor-related records, requirements to notify GDC of proposed deletion or substitution of subcontractors, GDC’s right to approve any substitute subcontractors, nondiscrimination, and general contract compliance—remain in full force and effect. GDC also reminds contractors of their obligation to comply with all applicable federal regulations, policies, procedures and directives as they may be amended or promulgated from time to time.
GDC is committed to complying with all applicable law and is continuing its in-depth review of the IFR. GDC anticipates further direction from the U.S. DOT, which may result in additional changes to the U.S. DOT’s DBE Program and the requirements that flow down to UCPs, GDC, and its contractors. If so, GDC will provide notification to contractors of any additional changes as soon as possible.
GDC remains committed to the DBE program. Neither the U.S. DOT’s DBE Program nor GDC’s DBE program is terminated. In accordance with the terms and conditions of GDC contracts, GDC explicitly retains its right to re-implement the full requirements of the DBE participation provisions, or portions thereof, and to further update contract provisions for compliance with the GDC DBE program as necessary.
Please contact Tracey Mitchell, Senior Director Business Engagement and Compliance with any questions at Tmitchell@gatewayprogram.org. All related correspondence can be sent to the GDC Business Engagement and Compliance Office of Business Engagement and Compliance at 22 Cortlandt St., 16th floor, New York, NY 10007-3104.