On October 3, 2025, the USDOT published an Interim Final Rule that updates 49 CFR Parts 23 & 26 governing the Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business Enterprise (ACDBE) programs.

The IFR and accompanying IFR FAQ issued on October 24, 2025, require Caltrans to operate the DBE/ACDBE programs in a constitutionally compliant, nondiscriminatory manner. It eliminates all race and sex-based presumptions of disadvantage and replaces them with a strictly individualized determination standard.

As a result, the California Unified Certification Program (CUCP) must reevaluate all DBE firms under the new criteria before their eligibility can be re-established. Until reevaluation is complete, DBE goals cannot be set on contracts, and no DBE participation may be counted toward any DBE goal.

Effective immediately, all Caltrans divisions, districts, and
subrecipients must operate under these new federal requirements

As a result of these program changes, Caltrans Division of Local Assistance issued Office Bulletin 25-07 announcing DBE Contract Goal Setting and DBE Monitoring & Compliance are suspended. The suspension excludes:

• Prompt payment for satisfactory performance (49 CFR §26.29(b); and,
  
  
• Termination provisions, i.e., a prime contractor or consultant cannot terminate a DBE or any portion of the DBE’s work listed without "good cause" and without prior written consent from Caltrans. (49 CFR §26.53(f)(3))
  
  

For questions regarding your LPA contracts, contact your DLAE or DBE Coordinator. 
For questions regarding certification, contact the Office of Civil Rights. 

Read the Policy Update