The U.S. Department of Transportation (USDOT) published an Interim Final Rule (IFR) amending regulations for the Disadvantaged Business Enterprise (DBE) and Airport Concession DBE (ACDBE) programs (49 CFR Parts 23 and 26) on October 3, 2025.
In response to the Interim Final Rule (IFR) regarding 49 CFR Parts 23 and 26, the DBE is suspended until California’s disadvantaged businesses can be recertified under the IFR’s new DBE certification requirements. For more information, visit the Caltrans Division of Local Assistance Disadvantaged Business Enterprise webpage.
We are currently reviewing the IFR in detail and coordinating with the U.S. Department of Transportation to provide further guidance.
During the temporary suspension, there will be:
- No contract goals
- No Good Faith Effort Documentation
- No counting of DBE participation
- No monitoring of DBE program compliance
- No DBE forms submission
Regarding Contracts:
- Executed Contracts signed on or before October 3:
- Existing contracts remain valid.
- No compliance monitoring is required.
- DBE commitments and participation under existing contracts cannot be counted toward goal attainment during suspension period.
- Good faith effort documentation is no longer required for termination and replacement.
- Contracts at Bid Solicitation and Procurement
- Bid solicitation and procurement must not include a DBE goal, and contracts will not follow DBE program requirements. Subsequently, Good Faith Efforts are no longer required.
- Currently advertised projects require an addendum removing the DBE goal and requirements from the bid package. The addendum may extend the bid opening period, if necessary, for bid adjustments.
- Contracts at Bid Evaluation and Selection
- Projects at the bid selection stage are the most difficult. Re-advertisement is an option. Another option is selecting the lowest most qualified bidder without regard to DBE commitment.
- Caltrans recommends all agencies consult with their legal team to determine how to proceed in these situations.
- Prevailing wage, certified payroll, or prompt payment, termination/replacement continue as they are upheld by other subcontractor regulations.
Contact your District Local Assistance Engineer or District DBE Coordinator for specific questions regarding your project.
As the process continues, additional guidance, policy updates, and procedural instructions will be issued to ensure compliance and support for recipients and stakeholders.
Below is Caltrans’ Office of Civil Rights official advisory and response to date, and the Office Bulletin #25-07. Please click on the image to access the 3-page document. This advisory summarizes the key federal changes now in effect, including the suspension of DBE goal setting, the reevaluation of all certified firms, and new documentation requirements for certification. Should you have any questions about how the Interim Final Rule affects your projects, please email your District Local Assistance Engineer.
