DBE Program to Stay, other DEI Programs Rolled Back

Trump is overturning many sacred cows, but not the DBE program.

Source : Wikimedia Commons, US DOT Headquarters in Washington, DC

January 30, 2025

Author : Patty Allen

Programs that focus on helping traditionally underrepresented groups in federal construction projects are facing challenges, but they aren't gone. 

These programs, such as those managed by the Small Business Administration (SBA) and the Department of Transportation (DOT), aim to provide opportunities for disadvantaged businesses and workers. 

Despite recent moves by the federal government to roll back diversity, equity, and inclusion (DEI) efforts, these programs remain in place because they were created by Congress and cannot be eliminated through executive orders alone. Some, such as the DBE program, have existed since the civil rights era.

Chris Slottee, a lawyer based in Anchorage, Alaska, who specializes in federal contracting, pointed out that these disadvantaged business programs (DBE) are protected by law. He explained that while recent executive orders from President Donald Trump signal opposition to some such programs, they cannot be ended without congressional action. 

This provides some stability for programs like the SBA’s 8a program and the DOT’s Disadvantaged Business Enterprise (DBE) program, even as broader DEI efforts face significant changes.

This week, President Trump issued several executive orders aimed at removing DEI initiatives within the federal government. One of these orders reversed an action from 1965 by President Lyndon Johnson, which had banned discrimination in federal contracting. Other orders went further, directing federal agencies to encourage private businesses to move away from DEI practices and end what Trump referred to as “illegal discrimination and preferences.” The White House stated that these changes are intended to protect the civil rights of all Americans and promote equal opportunities.

The SBA’s 8a program and the DOT’s DBE program set goals to include women and other underrepresented groups in government construction contracts. These programs have faced legal challenges in recent years, especially after the Supreme Court’s 2023 decision to ban affirmative action in university admissions. In response, changes were made to these programs to address potential legal concerns. For instance, race and gender are no longer automatic factors for participation in the SBA’s 8a program. Slottee noted that this adjustment could help shield these programs from Trump’s recent executive orders.

Even with these protections, Slottee warned that the support for these programs could weaken under the new administration. Leadership changes at the SBA and DOT could lead to shifts in focus or reduced backing for disadvantaged business programs. This could make it harder for these programs to achieve their goals or provide the same level of support to small businesses and underrepresented groups.

Trump’s executive orders could also have broader impacts on contractors who work on federally funded projects. Historically, presidents have used executive orders to add requirements to federal contracts. These have included obligations for affirmative action plans, mandated sick leave, and other conditions aimed at supporting workers. Slottee explained that Trump’s orders might remove some of these requirements, potentially reducing the administrative workload for government contractors. While this could be seen as a relief for some businesses, it may also reduce protections and opportunities for workers.

The future of disadvantaged business programs remains uncertain. While the legal framework that protects them offers some stability, the political environment poses challenges. Changes in leadership and policy priorities could influence how these programs operate and how much support they receive. Contractors and businesses that rely on these programs will need to stay informed and adapt to any shifts in policy.

These recent developments hold a mirror to the tension between efforts to promote diversity and inclusion and opposing views that seek to limit such initiatives. The outcome of this debate will have lasting effects on federal contracting and the opportunities available to underrepresented groups. For now, the SBA’s 8a program and the DOT’s DBE program continue to play a role in creating opportunities for small businesses and disadvantaged groups, but their future will depend on the actions of policymakers and the courts in the years to come.

Despite the uncertainty, these programs provide a pathway for small businesses and underrepresented groups to participate in federal projects. Their continued existence reinstates the importance of legal protections and the role of Congress in shaping policies that impact millions of Americans. As these programs face scrutiny and potential changes, the people and businesses they serve will be watching closely to see how they evolve.

Category : Disadvantaged Business Enterprises Federal Government Small Business Administration

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