USDOT Files Motion to Remove Key Provisions From DBE Program
According to the American Public Transportation Association (APTA), recent litigation, including the Mid America Milling and Nuziard cases, “have challenged the federal program’s constitutionality.”
Under the terms of the proposed settlement (download below), USDOT will “prohibit federal aid funding of projects incorporating DBE contract goals based on those presumptions.” However, APTA says the settlement is not final; it must receive approval from the U.S. District Court, which is “likely to consider arguments from several organizations and companies that support the DBE program, many of which recently intervened as parties in the litigation.”
While the proposed settlement pertains to the federal DBE program, it does not pertain to similar laws enacted at the state and local level, noted APTA, which requests USDOT “issue clear guidance regarding the implications of this filing” and “seeks to ensure that federally funded projects continue to operate efficiently and effectively for all who are impacted.”
“The DBE program enjoys robust support from agencies, organizations, and members who rely on contractor networks to deliver public transportation,” APTA said.
“Public transportation depends on a broad array of contractor networks to deliver important projects and services to our communities,” said APTA President and CEO Paul P. Skoutelas. “The DBE program is about small businesses and expands opportunities while providing access to the full range of capabilities needed to build and maintain our public transportation systems.”
In related news, Skoutelas released the following statement in regard to POTUS 47’s Fiscal Year (FY) 2026 budget request for public transit and passenger rail:
“APTA applauds [POTUS 47’s] historic investment in public transit and passenger rail infrastructure in his FY 2026 Budget request. The proposed $21.2 billion for public transit—an increase of $310 million—and $16.4 billion for passenger and freight rail—an increase of $314 million—represent a significant commitment to strengthening our economy and building a better America.
“This increased investment will help communities across the nation expand access to reliable, efficient public transportation while supporting millions of American jobs and driving economic growth. These investments will benefit American manufacturers and suppliers who build the buses, railcars, and other equipment that keep our public transit systems running. Public transit and passenger rail are essential components of our nation’s infrastructure that connect people to opportunities and businesses to markets.
“We look forward to working with the White House, U.S. Department of Transportation, and Congress to advance these critical investments that will benefit communities nationwide and strengthen America’s competitive edge.”
More information on the proposed funding is available here.
According to a report by Bloomberg Reporter, “Amtrak’s busy Northeast Corridor would see a drop in grant funding under [POTUS 47’s] new proposed budget request, as the administration seeks to shift more money to the national network.”
The POTUS 47 administration is proposing that Congress give about $850 million to the Northeast Corridor in fiscal 2026, a roughly 25% decrease from $1.14 billion in fiscal 2025, according to budget documents posted on Friday, Bloomberg Reporter reported. Amtrak’s national network, which operates rail lines across the country, would get $1.58 billion, up from $1.29 billion the previous year.
The more detailed request comes after the POTUS 47 administration “previously sent its initial skinny budget request to allow lawmakers in May. The Transportation Department’s overall funding would increase under the proposal, boosting the Federal Aviation Administration amid recent air travel woes,” according to the report.
Amtrak money, Bloomberg Reporter reports, “has become more political during appropriations negotiations in recent years, with Northeast Republicans previously opposing proposals with cuts to the Northeast Corridor. The proposal does also include supplemental funding to Amtrak from the 2021 infrastructure law.”
Amtrak last year hit record ridership. Stephen Gardner, the former CEO of Amtrak, resigned this year in what he said was a move to “ensure that Amtrak continues to enjoy the full faith and confidence of this administration,” according to the report.
