Important: Changes to the DBE Program Are Now in Effect
The U.S. Department of Transportation (USDOT) has issued a new Interim Final Rule (IFR) that makes significant changes to the Disadvantaged Business Enterprise (DBE) and Airport Concessions DBE (ACDBE) programs. This rule took effect on October 3, 2025, and it impacts how firms are certified, how goals are set, and how DBE participation is counted on federally funded contracts.
As a result, the New Mexico Department of Transportation (NMDOT) and other Unified Certification Program (UCP) partners are adjusting certification processes to meet the new federal requirements.
What’s Changing
Here’s a summary of the major updates in the Interim Final Rule:
• No more automatic presumptions of social and economic disadvantage based on race, ethnicity, or gender.
• All applicants must now provide individualized documentation showing how they have personally experienced disadvantage.
• All existing DBEs must be reevaluated under the new standards. You will remain certified for now, but reevaluation will be required soon.
• New DBE and interstate certification applications are temporarily paused in New Mexico until USDOT issues additional guidance.
• DBE participation tracking will be paused during this transition. Once reevaluation is complete, tracking will resume under the new framework.
Note: Since 2016, New Mexico has operated under a race-neutral DBE program and will continue to refrain from assigning project-specific DBE goals on NMDOT highway construction projects.
What This Means for You
If you are a currently certified DBE in New Mexico:
• Your certification remains active, but you will need to prepare for reevaluation.
• Start gathering materials now — this will make the process smoother once instructions are released.
If you were planning to apply for certification:
• NMDOT has paused new and interstate applications until federal guidance is finalized.
• You can still prepare documentation so you’re ready to apply when the process reopens.
For contractors and agencies:
• DBE goals on upcoming projects may be temporarily suspended or adjusted.
• Prompt payment, contract compliance, and other equity provisions remain in effect.
How to Prepare
Here are practical steps DBE firms can take today:
1. Update your contact info with NMDOT or your certifying agency so you receive notices.
2. Start your personal narrative — write specific examples of barriers or discrimination you’ve faced in business.
3. Update your Personal Net Worth (PNW) statement and business financials. C
4. Review your ownership, control, and independence documentation to ensure it’s current.
5. Stay alert for communication from your certification officer regarding reevaluation deadlines.
6. Consult your business advisor or attorney if you need help preparing documentation.
Timeline & Next Steps
• Effective date: October 3, 2025
• Reevaluation period: Begins soon — NMDOT and USDOT will issue further instructions.
• Contract goals paused: Until reevaluation is complete nationwide.
• Updates will be shared: via NMDOT’s website and future newsletters.
We’ll continue to send updates as additional guidance is released.
Need Help or Have Questions?
Contact:
Julian Salazar
DBE Certification Officer, NMDOT
Julian.Salazar@dot.nm.gov
(505) 670-3294
NMDOT DBE Certification Page (https://www.dot.nm.gov/highway-operations-program/operations-support-division-director/construction-civil-rights-bureau/disadvantaged-business-enterprise-certification/)
You can also review USDOT’s official IFR guidance and FAQs here:
(https://www.transportation.gov/sites/dot.gov/files/2025-09/DBE%20IFR%20Guidance.9-30-2025.pdf)