October 3, 2025

By Lane Kimble

Wisconsin may need to recertify all Disadvantaged Business Enterprises (DBEs) under a new rule the USDOT published Tuesday.

The federal agency’s interim final rule on Sept. 30 essentially removes the automatic assumption that all DBEs are disadvantaged by race or sex.  Instead, USDOT wants DBEs to submit documentation on a project-by-project basis that proves such a disadvantage.

The rule is in response to an ongoing federal lawsuit challenging the constitutionality of the Reagan-era DBE program.

In addition, state departments of transportation–including WisDOT–may not place DBE goals on federally funded highway projects until a recertification is complete.  It’s unclear how the rule change may affect existing contracts, according to ARTBA.

The order marks a strong pivot in the federal government’s stance on the DBE program under the Trump administration since two companies sued over its constitutionality prior to the election last fall.

Mid-America Milling Company and Bagshaw Trucking (represented by the Wisconsin Institute for Law and Liberty) sued in September 2024 to block the federal government from using the DBE program to award contracts, claiming it violates the Constitution’s equal protection clause based on race.

WTBA is working with WisDOT leadership to digest the rule change and what changes–if any–Wisconsin heavy highway contracts (past, present, and future) may face.

Click HERE to read the USDOT’s rule guidance.

The rule will be published Friday, Oct. 3, launching a 30-day window for public comment.  You can submit questions or comments to WTBA via lkimble@wtba.org or to ARTBA at psharma@artba.org or rjuliano@artba.org.