Final federal rule requires most Alaska DBE firms to prove disadvantage individually

The U.S. Department of Transportation published a final rule Sept. 25 that ends race- and sex-based presumptions of disadvantage in its Disadvantaged Business Enterprise and Airport Concession DBE programs. Most Alaska firms certified under those programs must now prove disadvantage case by case to keep their status for federally funded road and airport work.

The rule largely adopts an interim version the department issued Oct. 3, 2025. The department says federal court rulings made the old presumptions unconstitutional.

Under instructions from the Alaska Department of Transportation and Public Facilities, owners must file a new personal net worth statement and a written narrative showing disadvantage "without regard to race or sex." Agencies cannot set contract goals or count DBE participation toward those goals until each firm's reevaluation is complete.

The rule treats firms owned by Alaska Native corporations and tribes differently. Native corporation-owned firms will continue to follow a separate certification process that, according to the rule, reflects their recognition as disadvantaged under the Alaska Native Claims Settlement Act. Tribally owned firms are exempt from the new reevaluation and narrative requirements. The department said those businesses are owned by sovereign entities, not individuals. Alaska Native people who own businesses individually must file the new narrative like other owners.

The state Civil Rights Office's $2,000 reimbursement program ends Dec. 31. It covers firms that have been recertified with Alaska home-state certification and that bid on Federal Highway Administration-funded projects or appear on the state's bidders registration.