FTA Recipient:

As a reminder, beginning October 9, 2024, the Federal Transit Administration is moving to a two-tiered system for Disadvantaged Business Enterprise program compliance for recipients that receive planning, capital, or operating assistance. Details on the tiered approach are outlined in the U.S. Department of Transportation’s updated DBE Final Rule at 49 CFR § 26.21(a), which went into effect May 9, 2024. 

FTA recipients are responsible for assessing their anticipated contracting opportunities and identifying their appropriate Tier designation: 

• Tier I recipients are those recipients that will award prime contracts exceeding a cumulative total value of $670,000 in FTA funds in a federal fiscal year, excluding transit vehicle purchases. Tier I recipients must have a DBE program that meets all the requirements outlined in 49 CFR Part 26 (DOT has published a Summary of Rule Changes). FTA Tier I recipients must upload their updated DBE program into TrAMS by March 1, 2025, for FTA review.
• Tier II recipients are those recipients that will award prime contracts with a cumulative total value of $670,000 or less in FTA funds in a federal fiscal year, excluding transit vehicle purchases. Tier II recipients must comply with abbreviated requirements, including the five specific provisions outlined in 49 CFR § 26.21(a). For additional details, see Guidance for FTA Tier II Recipients on Implementing the Disadvantaged Business Enterprise (DBE) Program Final Rule Published April 9, 2024. Tier II recipients do not submit documentation of these provisions to FTA for approval. However, FTA will verify compliance with these requirements during Triennial and State Management Reviews.

Also note that DOT issued additional DBE Program Guidance (Fall 2024) on September 27, 2024.

FTA recipients with any questions about the new rule requirements should reach out to their Regional Civil Rights Officer (RCRO) or email FTACivilRightsSupport@dot.gov for technical assistance. 

Helpful Links:  
DOT DBE Final Rule Webpage
FTA DBE Webpage
DOT Summary of Rule Changes
FTA Tier II Guidance
DBE Final Rule Training Sessions and Recordings