Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
OCTOBER 16, 2025
Preamble
Motion by:
DIRECTORS BASS, DUPONT-WALKER, SOLIS, PADILLA, DUTRA AND MITCHELL
Protecting Our Small Businesses Motion
On September 30, 2025, the U.S. Department of Transportation (USDOT) issued an Interim Final Rule (IFR) that immediately changes how Disadvantaged Business Enterprise (DBE) certifications are evaluated. Effective October 3, 2025, the IFR removes race- and sex-based presumptions of disadvantage and requires all certified firms to submit new personal narratives and financial statements to demonstrate social and economic disadvantage on a case-by-case basis. As a result, all existing DBE certifications are undergoing reevaluation, and recipients of federal transportation funding, including Metro, must pause their DBE programs until the re/certification reviews are complete. Metro has already taken steps to inform stakeholders, align internal processes, and coordinate with peer agencies such as Caltrans and BART.
While Metro must comply with this federal directive, the agency remains committed to the principles underlying the DBE program: expanding access, removing barriers, and ensuring that small and disadvantaged businesses continue to thrive. Metro's Small Business Enterprise (SBE) Program was designed to comply with California Proposition 209, which prohibits the use of race- and sex-based preferences in public contracting.
Disadvantaged Business Enterprises (DBEs) are essential partners in delivering Metro's projects and advancing the agency's commitment to equity and economic inclusion, as seen in the planning and construction of projects such as the K Line, Regional Connector, LAX MTC, and many others. In Fiscal Year 2025 alone, Metro paid out $137,784,030 in eligible contracting dollars to certified DBE firms, helping ensure that small and disadvantaged businesses share in the economic benefits of Metro's capital and operational investments. Statewide, 5,997 firms are...
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