Minority Contractors Struggle as Trump-Era DEI Rollback Threatens Their Livelihoods

Firms must now prove individual disadvantage, facing state-by-state patchwork of recertification processes

Mar. 17, 2026 at 10:04am

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Five months after a federal court ruled in favor of the Trump administration's overhaul of the U.S. Department of Transportation's Disadvantaged Business Enterprise (DBE) program, minority-owned businesses say they are being shut out of billions in construction work. The 2021 Biden-era infrastructure law set a 10% goal for disadvantaged businesses, but the DBE program is now in flux as firms must recertify by demonstrating individual hardship without reference to race or sex. Minority contractors describe declining profits, layoffs, and project delays as they navigate a state-by-state patchwork of recertification processes.

Why it matters

The DBE program has helped level the playing field for minority and women-owned firms competing for lucrative transportation contracts for over 40 years. Its rollback poses a major threat to the livelihoods of thousands of minority-owned businesses that have relied on the program to access federal infrastructure dollars.

The details

Under the new rules, roughly 50,000 firms nationwide must submit "personal narratives" and financial documents to recertify as disadvantaged, rather than having an automatic presumption of disadvantage based on race or gender. This has created a patchwork of state-level timelines and processes, with some states like Minnesota and New Jersey suspending participation goals on major projects while they reevaluate certifications. Florida is even advocating for the program's repeal entirely.

  • In October 2025, a federal court ruled in favor of the Trump administration's overhaul of the DBE program.
  • In November 2025, Minnesota started the review process to recertify contractors as disadvantaged, but did not provide a timeline for completion.
  • On January 12, 2026, New Jersey started the process of reevaluating disadvantaged businesses, but did not provide an expected conclusion date.
  • On February 2026, the Trump administration temporarily halted the $16 billion Gateway Tunnel project between New York and New Jersey to ensure funding wasn't tied to diversity initiatives.
  • On March 16, 2026, North Carolina began its DBE recertification process, giving businesses 60 days to submit materials.

The players

U.S. Department of Transportation

The federal agency that oversees the Disadvantaged Business Enterprise program, which is now in flux due to the Trump administration's overhaul.

Minnesota Department of Transportation

The state transportation agency that dropped its minority participation goal on a $1.8 billion bridge replacement project as it reevaluates DBE certifications.

Gateway Development Commission

The agency overseeing the $16 billion Gateway Tunnel project between New York and New Jersey, which was temporarily halted by the Trump administration over diversity initiatives.

Florida Department of Transportation

The state transportation agency that is advocating for the repeal of the federal Disadvantaged Business Enterprise program.

Texas Department of Transportation

The state transportation agency that has not recertified any firms since beginning its DBE reevaluations in February 2026.

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What they’re saying

“Prime contractors and general contractors do not use women and minorities unless they have to. Taking away the goals has devastated the program.”

— Joann Payne, President of Women First, an advocacy organization for women-owned businesses in transportation and construction

“These businesses build jobs, they pay taxes and they build communities.”

— Don Cravins, CEO of the National Minority Supplier Development Council

“It seems like the same contractors in my area are always awarded the big jobs. They controlled and monopolized work from smaller firms.”

— Terrell Johnson, Owner-operator of a trucking company in Portsmouth, Virginia

“You have to find other ways in this industry to survive.”

— Sean Link, Dump-truck contractor in North Carolina

What’s next

The judge in the Gateway Tunnel project case will decide whether to permanently release the $16 billion in federal funding that was temporarily halted over diversity initiatives.

The takeaway

The rollback of the Disadvantaged Business Enterprise program threatens to undermine decades of progress in providing minority and women-owned firms access to lucrative transportation contracts, potentially shutting them out of billions in infrastructure dollars and jeopardizing their livelihoods. This highlights the ongoing debate over the role of race- and gender-conscious programs in government contracting.