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Release Date

Important Updates to DBE and ACDBE Certification Requirements

Austin Small and Minority Business Resources (SMBR) wants to make sure you are aware of recent changes to the Federal Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) regulations. These changes, issued by the U.S. Department of Transportation (USDOT) through the Federal Aviation Administration (FAA), are part of an Interim Final Rule (IFR) that directly affects certified vendors with the City of Austin.

What Is the New Interim Final Rule and How Does It Impact Me?

On October 3, 2025, the U.S. Secretary of Transportation issued an Interim Final Rule, effective immediately, that makes significant changes to the DBE and ACDBE programs. The new rule removes the previous presumption that women and certain minority business owners are automatically considered socially and economically disadvantaged. Instead, all business owners seeking certification or renewal must now demonstrate disadvantage on a case-by-case basis by submitting a personal narrative to the certifying agency (ASMBR) describing specific instances of economic hardship, systemic barriers, or denied opportunities that have impeded success in education, employment, or business, including challenges in obtaining financing on terms available to similarly situated non-disadvantaged individuals; and completing a new Personal Net Worth evaluation as part of the application or renewal process.

Why Did This Change Occur?

The change follows a 2024 federal court ruling, Mid-America Milling Co. v. U.S. DOT (E.D. Ky., Sept. 23, 2024), which determined that race- and gender-based presumptions of disadvantage were unconstitutional. USDOT and the U.S. Department of Justice agreed with the court’s findings and issued this rule to ensure the DBE and ACDBE programs remain legally compliant nationwide.

What This Means for Certified Firms

  • All currently certified DBE and ACDBE firms must reapply for certification under the new standards. This process will include:
  • Submitting a personal narrative describing individual disadvantage; and
  • Providing updated documentation for a new Personal Net Worth evaluation.
  • Agencies, including the City of Austin, may not set DBE/ACDBE contract goals or count participation toward federal program goals until reevaluations are complete.

What’s Next

ASMBR is committed to helping firms navigate this transition. Additional information about the recertification process, required documentation, and SMBR’s support resources will be shared once federal guidance is finalized. The Texas Unified Certification Program (TUCP) is working closely with USDOT and partner agencies to develop clear procedures for implementing these new regulations. We will provide timely updates, host information sessions, and offer one-on-one assistance once guidance is confirmed.

Read the Interim Final Rule

Review the rule in its entirey.
 

Contact us for more information:
Austin Small and Minority Business Resources (SMBR)
(512) 974-7600
smbrcertification@austintexas.gov