49 C.F.R. § 26.21

Who must have a DBE program?

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(a) If you are in one of these categories and let DOT-assisted contracts, you must have a DBE program meeting the requirements of this part:

(1) All FHWA primary recipients receiving funds authorized by a statute to which this part applies;

(2) All FTA recipients receiving planning, capital and/or operating assistance must maintain a DBE program.

(i) FTA Tier I recipients must have a DBE program meeting all the requirements of this part.

(ii) Beginning 180 days after the publication of the final rule, FTA Tier II recipients must maintain a program locally meeting the following requirements of this part:

(A) Reporting and recordkeeping under § 26.11;

(B) Contract assurances under § 26.13;

(C) Policy statement under § 26.23;

(D) Fostering small business participation under § 26.39; and

(E) Transit vehicle procurements under § 26.49.

(3) FAA recipients receiving grants for airport planning or development that will award prime contracts the cumulative total value of which exceeds $250,000 in FAA funds in a Federal fiscal year.

(b)(1) You must submit a conforming DBE program to the concerned Operating Administration (OA). Once the OA has approved your program, the approval counts for all of your DOT-assisted programs (except goals that are reviewed by the relevant OA).

(2) You do not have to submit regular updates of your DBE program plan if you remain in compliance with this part. However, you must submit significant changes to the relevant OA for approval.

(c) You are not eligible to receive DOT financial assistance unless DOT has approved your DBE program and you are in compliance with it and this part. You must continue to carry out your DBE program until all funds from DOT financial assistance have been expended.

[89 FR 24965, Apr. 9, 2024]
Notes of Decisions
Cited in 16 cases (7 in the last 5 years), 2000–2026 · leading case: Kousisis v. United States, 605 U.S. 114 (2025).
Kousisis v. United States, 605 U.S. 114 (2025). · cites it 3× “See 49 CFR §§26.21 (a), 26.5 (2024). This promise turned out to be an empty one: In ad- dition to using the supplier solely as a pass-through entity, Alpha and Kousisis submitted multiple false certifications to cover up their scheme.”
United States v. Joseph Nagle, 803 F.3d 167 (3rd Cir. 2015). · cites it 2× “49 C.F.R. § 26.21 . A DBE is a for-profit small business that is at least 51% owned by an individual or individuals who are both socially and economically disadvantaged and whose management and daily operations are controlled by one or more of the disadvantaged individuals who…”
Adarand Constructors, Inc. v. Slater, 528 U.S. 216 (2000). “5129 (1999) ( 49 CFR § 26.21 (b)(1)) (“[The State] must submit a [disadvantaged business enterprise] program conforming to this part by August 31, 1999 to the concerned operating administration”).”
Braunstein v. Arizona Dep't of Transp., 683 F.3d 1177 (9th Cir. 2012). “49 C.F.R. § 26.21 . To qualify as a DBE, a “for-profit small business” must be “at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged.”
United States v. Stamatios Kousisis, 82 F.4th 230 (3rd Cir. 2023). “3 49 C.F.R. § 26.21 . 4 49 C.F.R. § 26.5 . 3 DBEs.”
Finch v. Commonwealth Health Ins. Connector Auth., 461 Mass. 232 (Mass. 2012). “49 C.F.R. § 26.21 (a) (2010). Congress has set an aspirational goal that ten per cent of Federal highway funds be expended with minority contractors.”
Geod Corp. v. New Jersey Transit Corp., 746 F. Supp. 2d 642 (D.N.J. 2010). · cites it 2× “107 (1998); 49 C.F.R. § 26.21 . This requirement was extended by the successor to TEA-21, the Safe, Flexible, Efficient Transportation Equity Act: A Legacy for Users (“SAFETEALU”).”
H.B. Rowe, Inc. v. Tippett, 589 F. Supp. 2d 587 (E.D.N.C. 2008). “49 C.F.R. §§ 26.21 ; 26.45(a). The goals set by state departments of transportation need not be exactly 10%, and exemptions may be granted under certain circumstances.”
United States v. Stamatios Kousisis, 66 F.4th 406 (3rd Cir. 2023). “2 49 C.F.R. § 26.21 . 3 49 C.F.R. § 26.5 . 3 DBEs.”
Best Wood Judge Firewood & Tree Serv. v. United States Dep't of Transp., 784 F. Supp. 2d 1059 (E.D. Wis. 2011). “49 C.F.R. § 26.21 . DBE status may prompt a contractor to hire a subcontractor regardless of non-union status.”
N. Contracting v. State of Illinois, 473 F.3d 715 (7th Cir. 2007). “See 49 C.F.R. § 26.21 (a). To qualify as a DBE, a company must be at least 51% controlled by “individuals who are both socially and economically disadvantaged.”
DCCCA1, Inc. v. Diversified Prod. Indus., Ltd. CA1/2 (Cal. Ct. App. 2016). “(See 49 C.F.R. §§ 26.21 , 26.5, 26.53(a)-(d).) 3 DPI later claimed that the four percent markup was meant to be a contingency amount to cover any further rises in steel prices, and that its total intended markup had been 10 to 15 percent.”
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