Case Dismissed: What’s the Impact

It seems hard to keep up lately with so much happening in the country. The impact of economic conditions on businesses and households has our focus regularly shifting as we triage each day. I wanted to take a moment of your time today regarding the DBE program updates and current landscape.

Since 2023, we have been watching the Mid-America Milling Company v. United States Department of Transportation case. The case in short was two non-DBE subcontractors sued the USDOT contending that they were losing work due to the DBE program and the DBE program was unconstitutional. The District Court judge issued an injunction where if the plaintiffs were bidding a job the DBE goal would be reduced to zero. The USDOT under the current administration brought forward a consent decree that they agreed that the program was unconstitutional. A third party -DBE Intervenors – were recognized in the suit as the affected party and challenged the consent decree. The USDOT subsequently changed the DBE program requirements with an interim final rule effective October 3, 2025, that removed the presumption of disadvantage based on race and gender. This in short, halted goal setting on federal funded projects across the nation until each state could reevaluate all certified DBEs under the newly established criteria. The DBE Intervenors requested that the case be dismissed based on the change in criteria.

Last week – March 19, 2026, the judge dismissed the case ordering the following:

In dismissing this action, the Court does not purport to speak any further as to the merits of Plaintiffs’ claim. Rather, the Court finds that its jurisdiction is restrained, and it would exceed it by taking further action in this case. Accordingly, and the Court being otherwise sufficiently advised, it is hereby ORDERED as follows:

    1. The Intervenor DBE’s Motion to Dismiss [R. 129] is GRANTED;
    2. The Motion for Reconsideration [R. 124] filed by Central Seal Company and Charbon Contracting, LLC is DENIED AS MOOT;
    3. The Parties’ Joint Motion for Entry of Consent Order [R. 82] is DENIED AS MOOT
    4. Although the Court declines to vacate the preliminary injunction, the injunction in this matter, entered September 23, 2024, [R. 44] is DISSOLVED because the entire matter has become moot.

While this doesn’t change the new rules for certification instituted by the USDOT, the order also didn’t rule that the program is unconstitutional. This leaves past court rulings in favor of race and gender presumptions in the DBE program intact. It could mean that future administrations or leaders could reverse the DOT’s final rule, particularly since it wasn’t done legally through congress. Congress has the power regarding the program and was not involved in the new rule.

What happens now? The main fight ahead of us is to ensure that the DBE program is reauthorized by congress by September 30, 2026. The program has been congressionally reauthorized since the 1980s but this year could end that. Many states want the program removed from statute entirely. DBEs of America indicated that the transportation reauthorization bill does not include the program. I am meeting with my congresswoman next week to get a status update and will circle in with you on what I learn.

I implore you to contact your US Congressional Representatives to advocate that the DBE program be reauthorized this year. When you contact your representatives, I have had a warmer reception when I discuss the necessity of small business opportunities over women and minority programs. Be simplistic in your conversations remembering that our representatives don’t necessarily understand the industry and impacts of the program. It will be far better to have a program that we can alter than to start from scratch.

 —B