By Sarah O’Linn, Construction Surety Expert/Partner at Florida Surety Bonds

 [email protected] | 407-786-7770 | Sarah’s LinkedIn

The U.S. Department of Transportation (USDOT) is initiating major changes to the Disadvantaged Business Enterprise (DBE) program, impacting federal transportation contracting nationwide at the local municipality level.  

In response to these federal changes, the City of Orlando suspended its Minority and Women Business Enterprise (MWBE) program to ensure compliance with federal laws while they wait for further guidance.

Similarly, the Greater Orlando Aviation Authority (GOAA) suspended its MWBE program in order to ensure compliance and protect access to roughly $37 million in critical Federal Aviation Administration (FAA) funding.

Key Developments:

  • Legal Challenge and Proposed Settlement: On May 28, 2025, USDOT filed a motion in the U.S. District Court for the Eastern District of Kentucky, proposing to eliminate race- and gender-based presumptions in the DBE program. This move stems from a legal challenge asserting that such presumptions violate the Equal Protection Clause of the Constitution. The proposed legal settlement, pending judicial approval, would require businesses to demonstrate social and economic disadvantage without relying on racial or gender classifications
  • Policy Shifts: Concurrently, USDOT announced the removal of diversity, equity, and inclusion (DEI) requirements from its $5.4 billion bridge funding program at the end of May. This policy shift aligns with broader federal efforts to eliminate DEI considerations from federal programs

Implications for Florida’s Construction Industry:

  • Program Suspensions: In response to recent federal policy shifts, the City of Orlando suspended its Minority and Women Business Enterprise (MWBE) program to align with federal compliance requirements. The Greater Orlando Aviation Authority (GOAA) followed suit, pausing its MWBE program to maintain eligibility for approximately $37 million in critical funding from the Federal Aviation Administration (FAA). Many local municipalities are expected to take similar action while waiting for clear guidance.
  • Certification Adjustments: Should the proposed settlement be approved, Florida’s Unified Certification Program (UCP) would need to revise its certification criteria, eliminating automatic presumptions of disadvantage based on race or gender. This would necessitate a more individualized assessment of each applicant’s social and economic disadvantage.
  • Contracting Practices: Construction firms in Florida may experience changes in subcontracting opportunities and requirements, as federal, state and local agencies adjust their procurement practices to align with the revised DBE program guidelines.

The USDOT is expected to provide further guidance to state and local agencies on implementing the revised DBE program requirements in the coming weeks.