USDOT Publishes FAQs on New DBE Rule: Key Clarifications for Applicants and Certifiers

The US Department of Transportation (USDOT) has issued new Frequently Asked Questions (FAQs) providing critical clarification on the Interim Final Rule (IFR) governing the Disadvantaged Business Enterprise (DBE) Program. These FAQs, released in late October 2025, expand upon the IFR published on October 3, 2025, and outline how the new rule affects DBE applicants, certifiers, and Unified Certification Program (UCP) administrators across the country.

Why This MattersThe IFR, issued by USDOT and supported by USDOT for implementation, introduces major procedural changes. Automatic presumptions of disadvantage based on race or gender have been eliminated. Instead, all applicants—including previously certified DBEs—must now provide a written narrative demonstrating how specific social or economic barriers have negatively affected their ability to succeed in business.
The FAQs confirm that the Uniform Certification Application (UCA) process is under review nationwide until each state’s UCP releases updated procedures and forms consistent with the IFR and further guidance from USDOT. This means no new certifications or renewals will be processed until those updates are issued.

Key Takeaways from the USDOT FAQ1. All Firms Must Reapply Under the New Rules
Existing DBEs are not automatically “grandfathered” into the new system. Each firm will need to be re-certified using the forthcoming UCA and narrative-based format once their state’s UCP announces its transition procedures.
2. Suspension of the Current UCA
The April 2024 version of the Uniform Certification Application (UCA) can no longer be used independently. Updated forms will reflect the narrative requirement and revised eligibility standards established in the IFR.
3. Required Narrative Documentation
Under the IFR, applicants must provide a detailed narrative describing personal experiences of social or economic disadvantage. This must go beyond general statements—each narrative should include concrete examples, such as barriers to education, financing, business opportunities, or industry access.
4. UCP Responsibilities
Each state’s Unified Certification Program will issue its own implementation plan and updated forms. Until then, agencies should not accept new DBE applications or recertifications. USDOT recommends that agencies prepare staff for consistent application of the new narrative-based criteria.
5. Legal Foundation
The new rule and its requirements stem from legal challenges including Ultima Services Corp. v. USDA, which called for individualized determinations of disadvantage. The IFR and its FAQs are intended to preserve the integrity of the DBE program while ensuring compliance with current constitutional standards.

Key Resources and Links

• USDOT FAQs on the DBE IFR (October 28, 2025)
• DBE IFR (Published October 3, 2025)
• DBE IFR Guidance (October 3, 2025)
• DBE Laws, Policy, and Guidance Portal
• Uniform Certification Application – April 2024 version (no longer in effect)
• UCA Page - where pending Replacement will be posted

What Happens Next USDOT has confirmed that an updated UCA and procedural framework will be released by USDOT and implemented by each state's UCP, "as quickly as practicable". Until that time, all DBE goal setting and counting is suspended.
RightSource Services continues to monitor updates closely and will issue plain-language summaries and training sessions for both DBE firms and agency certifiers as new information is released.

The USDOT has issued new FAQs clarifying implementation of the Disadvantaged Business Enterprise (DBE) Interim Final Rule (IFR), published October 3, 2025. These updates mark one of the most significant shifts in DBE program history.

According to the USDOT, the Uniform Certification Application (UCA) process is temporarily suspended nationwide until updated instructions and forms are posted. This suspension applies to both new applications and renewals.

All currently certified DBEs must be re-certified under the new rule, which now requires a written narrative demonstrating how specific social or economic barriers have impacted business success. The change eliminates prior race- or gender-based presumptions of disadvantage and replaces them with individualized determinations.

For certifiers, these FAQs provide some guidance on how to prepare for the upcoming transition.

RightSource Services will continue tracking updates and offering training, templates, and advisory support to help agencies and small businesses navigate the rollout.

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