Immediate Suspension of Disadvantaged Business Enterprise Program

On Oct. 3, 2025, the U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) DBE IFR Published 10-03-2025 that significantly modifies the Disadvantaged Business Enterprise (DBE) Program under 49 CFR Parts 23 and 26.  As required by the new federal regulations, Long Beach Transit (LBT) is immediately suspending its DBE Goal Enforcement Program.

The key changes under the IFR are:

• Elimination of race and gender based presumptions: DBE eligibility no longer includes automatic presumptions of disadvantage based on race or gender.
• Mandatory Recertification: All new applicants and former Certified DBE Firms are required to be recertified with a recognized Unified Certification Program (UCP) entity (within the Southern California region, the California Unified Certification Program (CUCP) entities would include Caltrans, LA Metro and the City of Los Angeles) in alignment with the new IFR certification standards.
• Suspension of DBE Goal Setting and Credit Counting: No new DBE goals will be set, and DBE participation cannot be counted toward goals until recertification is complete.

What This Means for LBT?

Until the UCP completes the recertification process:

• DBE goals cannot be set or enforced.
• DBE participation cannot be counted toward any contract or overall goals.
• Uniform Reports under 49 CFR § 26.21 are not required.
• Commercially Useful Functions (CUF) reviews are suspended.

Impact on Current Contractors and Subcontractors

• Existing contracts do not need to be modified.
• DBE credit is suspended for work performed after Oct. 3, 2025.
• Any work performed after Oct. 3. 2025 will not count toward DBE goals.
• DBE termination provisions under 49 CFR § 26.53(f) remain in effect.
• Prime contractors must obtain written consent from LBT before terminating or reducing DBE’s scope of work.

Design Build Contracts

• DBE subcontracts signed before Oct. 3, 2025 may proceed.
• No new DBE goals may be applied to design build phases.
• CUF reviews and DBE crediting are suspended as of Oct. 3, 2025.

Transit Vehicle Manufacturers (TVMs)

• TVMs are not required to update DBE goals or submit Uniform Reports.
• FTA recipients must continue checking the eligible TVM list before awarding contracts.
• Transit Vehicle Award Reports are not required during the recertification period.

Next Steps for Firms Seeking Future Work with LBT

To participate in future federally funded projects:

• Firms must be recertified under the new IFR standards.
• Applicants must submit a personal narrative and supporting documentation to the California Unified Certification Program (CUCP) entities Caltrans, LA Metro or the City of Los Angeles.

For questions about DBE recertification or federal DBE requirements, please refer to:

• DBE IFR FAQS

For specific procedures regarding upcoming LBT procurements, you may contact Long Beach Transit’s Regulatory Compliance and Civil Rights Office at kkimber@lbtransit.com or (562) 599-8564.