States Back Proposal to End Key DBE Requirements

What happened: A coalition of 21 state attorneys general and the Arizona state legislature urged a Kentucky federal court to approve a proposal that would end core provisions of the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) program. In the amicus brief filed June 16, the Republican state officials expressed support for a recent “consent order” in which the department has agreed to stop enforcing race- and gender-based goals on federal-aid projects, pending court approval.

In other filings relating to the Mid-America Milling Co. case, two Kentucky-based non-DBE contractors asked to intervene in support of the plaintiffs challenging the program. Additionally, a coalition of DBE program supporters has indicated plans to oppose the consent order in an upcoming filing.

Why it matters: In their amicus brief, the states argue DBE rules impose unconstitutional race- and women-owned preferences that inflate project costs and exclude low-bidding contractors. The two non-DBE companies seeking to intervene say they’ve repeatedly lost contracts despite submitting the lowest bids—solely because they’re not DBE-certified—even though significant portions of their workforces are women or minorities.

What’s next: Judge Gregory Van Tatenhove of the Eastern District of Kentucky recently imposed a 90-day pause on the case while he reviews the proposed consent order and arguments relating to the DBE program. ARTBA has requested guidance from the Federal Highway Administration addressing these pending policy changes. The association also recommended Congress work within this new legal landscape when reauthorizing the federal highway and transit programs due in 2026. For questions, please contact Rich Juliano or Prianka Sharma.