October 11th 2025.
In late September, the Department of Transportation under the Trump administration released a new rule for the Disadvantaged Business Enterprise and Airport Concession Disadvantaged Business Enterprise programs. However, this rule has caused quite a stir, with some, including the NAACP, claiming that it promotes discrimination.
One of the major changes in this rule is that individuals will now have to prove their own "social and economic disadvantage" in order to qualify, regardless of any systemic barriers they may have faced in the past. This has been met with criticism from the NAACP's president and CEO, Derrick Johnson, who sees it as a step backwards.
Johnson expressed his concerns in a press release, stating that this rule ignores the realities of racism and inequality in the contracting world. He believes that the federal government is choosing to turn a blind eye to these issues instead of addressing them head-on. This sentiment is not surprising to many, given the current political climate.
The DOT's DBE program was created in the early 1980s as a way to combat the ongoing effects of past discrimination in federally funded transportation contracts. This was meant to create more opportunities for Black Americans, people of color, and women-owned businesses. However, the recent changes to the rule could jeopardize these efforts.
Coinciding with the new rule is Construction Inclusion Week, an initiative developed by the construction industry to promote diversity in a field that is predominantly white and male. This industry is already facing a shortage of labor, and the new rule could further exacerbate the issue.
According to attorney Danielle Dietrich, the new rule has put all DBE goals on hold until states can reassess their DBEs without considering race, sex, or ethnicity. This means that contracts and opportunities for minority and women-owned businesses are now at risk.
Shon Harris, the owner of an electrical services firm in Chicago, expressed his concerns about the potential impact of the new rule on minority businesses. He believes that it could be a crisis for minority-owned businesses if the program is dismantled. Harris also pointed out that bias and racism will not simply disappear if the program is removed.
Attorney Kendra Perkins Norwood advises minority and women contractors to document any instances of discrimination in order to have a strong case if the DOT dismantles the program. This could be their best course of action to protect their businesses.
Oren Sellstrom, litigation director at Lawyers for Civil Rights in Boston, warned of the potential consequences of removing the program. He cited past instances where businesses were forced to close due to the prevalence of old boys' networks and the lack of support for minority-owned businesses. This could be a foreshadowing of what could happen if the new rule is implemented at the federal level.
It is worth noting that this change in the rule may be a reflection of the current administration's stance on diversity and inclusion. With white men in positions of power once again, it is not surprising that policies like this are being implemented. However, it is important to recognize and address the potential consequences that could arise from such actions.
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