Federal DBE & State M/WBE Programs will survive DEI Rollback

Congress started the DBE program in the early-1980's in the wake of the civil rights movement.

Source : Contractor News

February 28, 2025

Author : Alex Bustillos

The Disadvantaged Business Enterprise (DBE) program and state Minority/Women-Owned Business Enterprise (M/WBE) programs are expected to remain intact despite President Trump’s recent executive orders rolling back Diversity, Equity, and Inclusion (DEI) initiatives. 

Since the DBE program was created by Congress in 1983 and reauthorized under the 2021 Infrastructure Investment and Jobs Act, it cannot be undone by executive order alone. Any changes would require congressional action.

Although some associate the DBE program with DEI, it has already moved away from using race and gender as sole factors for certification. Businesses must now provide evidence of social and economic disadvantage rather than relying on a presumption based on minority status or gender. 

This shift follows a 2024 court ruling in Mid-America Milling Company v. United States Department of Transportation, which deemed the automatic presumption of disadvantage unconstitutional. While the ruling applied only to the case’s plaintiffs, it has influenced changes across the country.

State-run M/WBE programs, which operate separately from the federal DBE system, are also expected to remain. States like California, Illinois, and New York have multiple certification programs that apply beyond federal contracts, and some may even strengthen their inclusion efforts in response to federal changes.

Though the DBE program itself is not at risk, future federal policies could reduce its influence. Changes to funding priorities may impact DBE participation  in government projects, but for now, the program remains in place.

Category : Disadvantaged Business Enterprises Minority Business Enterprises Minority Women Business Enterprises Women Business Enterprises Federal Government State Government

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