MassDOT/MBTA Issue Guidance on USDOT's Revised DBE Rules
On October 3, 2025, The U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) that made immediate changes to the regulation governing the longstanding federal Disadvantaged Business Enterprise (DBE) rule.
On December 1, 2025, DOT issued updated FAQs clarifying how funding recipients—such as MassDOT—and contractors are to operate during the reevaluation period mandated by the IFR. On December 16, 2025, MassDOT and the MBTA issued a public notice outlining implementation steps applicable in Massachusetts.
In short, DBE contract goals and crediting are paused until the Massachusetts Unified Certification Program (MassUCP) completes required DBE reevaluations. For federally funded projects, contractors should anticipate amended solicitations, change orders eliminating DBE goals where applicable, and additional guidance from the MassUCP regarding documentation requirements and timing.
Key takeaways
- DBE contract goals and DBE participation crediting are suspended until MassUCP completes the required reevaluations.
- Uniform Reports are not required until new overall goals are adopted.
- MassDOT/MBTA have instructed contractors to suspend DBE participation reporting tied to contract goals during the transition period, but all other contract terms remain in full force and effect.
- Prime contractors must still comply with prompt payment and DBE termination rules.
- For advertised procurements, DBE goals will be removed; for projects that have been advertised but not yet awarded, DBE goals should be reduced to zero. Existing contracts may be modified by a change order to eliminate DBE goals.
- DBE owners seeking recertification must submit a personal narrative and a current personal net worth statement in accordance with the timelines established by the applicable certification program. Upon recertification, a DBE will retain its original certification anniversary.
- If a DBE is not recertified after reevaluation, recipients must take tailored “appropriate action” or risk DOT withholding payments on the affected contract. Required actions will be determined on a case-by-case basis.
- MassDOT and MBTA have confirmed that the Commonwealth's Supplier Diversity Office programs and nondiscrimination enforcement activities are not affected by the IFR.
What the December 1 USDOT FAQs Clarifies
The December 1 FAQs update provides practical guidance on procurement and contract administration during the DEB reevaluation period. Specifically, the FAQs clarify that recipients may remove DBE goals from advertised procurements without federal readvertising, subject to applicable state law, and may issue change orders to reduce DBE goals to zero on contracts executed before October 3, 2025.
Because DBE participation cannot be credited during the reevaluation period, prime contractors that terminate a DBE in compliance with 49 CFR § 26.53(f) are not required to add substitute DBE participation to meet suspended goals. The FAQs also confirm that Commercial Useful Function (CUF) reviews may be paused during the reevaluation process.
DBE owners seeking recertification must submit a personal narrative establishing social disadvantage by a preponderance of the evidence, along with a current personal net worth statement and any relevant financial information. UCPs may establish submission deadlines and are required to notify USDOT once reevaluation of timely submissions has been completed.
What the December 16 MassDOT/MBTA Notice Means for Existing Projects
MassDOT and the MBTA confirm that DBE contract goals cannot be set or enforced until MassUCP completes its reevaluation. For federally funded projects, the agencies have advised contractors to suspend DBE participation reporting tied to those goals, while continuing to comply with prompt payment obligations, DBE termination provisions, and all other applicable federal and contract requirements.
The agencies emphasize that nondiscrimination enforcement remains fully in effect, and that the IFR does not affect programs administered by the Commonwealth’s Supplier Diversity Office. The IFR also does not apply to non-federal aid projects. MassDOT and the MBTA indicate that the MassUCP is developing reevaluation procedures and will issue further guidance as that process moves forward.
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