The NAACP has issued a new statement speaking out against the Department of Transportation’s latest decisions, arguing that a newly placed rule “removes critical protections” for BIPOC and women-owned businesses.
In a statement released on Friday, the organization criticized the DOT’s Interim Final Rule decision for programs such as the Disadvantaged Business Enterprise and Airport Concession Disadvantaged Business Enterprise. Announced late last month, the rule essentially strips away the acknowledgment that BIPOC and women-owned businesses face disadvantages when obtaining opportunities. The rule does so by requiring that all applicants prove that they have “social and economic disadvantages.”
In its statement, the NAACP called on the DOT to repeal the rule and vowed to continue advocating against the new policy, promising to work alongside congressional leaders and provide legal assistance if needed. The organization also recommended that Black, Brown and women-owned businesses diligently document instances of discrimination.
“The Department of Transportation has turned its back on history and on the very purpose of the DBE program. The economic exclusion of Black Americans and women isn’t theoretical,” said the President of the NAACP, Derrick Johnson. “It’s measurable and ongoing. This change signals that the federal government would rather pretend inequality doesn’t exist than address it.”
Previously, Black Americans, women, Hispanic Americans, Native Americans and Asian Pacific Americans were presumed to be disadvantaged automatically under the Disadvantaged Business Enterprise.
Created in 1983, the program provides federally assisted contracts for small businesses that are at least 51% owned and controlled by individuals who are socially and economically disadvantaged. Their personal net worth must also not exceed $2.047 million.
Through the program, the DOT attempted to address past and ongoing discrimination amongst women and BIPOC when it comes to “federally-assisted highway, transit, airport, and highway safety financial assistance transportation contracting markets.” Under the previous Biden administration, the Bipartisan Infrastructure Law provided funding for the program from 2022 to 2026.
Previously, in 2021, the DOT’s Federal Highway Administration provided additional support for BIPOC and women-owned businesses seeking contracts for transportation projects through an additional $10 million in funding. The funds were allocated across all states, with Texas alone receiving over $1 million in funding.
With the latest rule, officials are warning that it could potentially undo over 40 years of progress made for disadvantaged contractors.
“This rule is nothing more than an attempt to erase the reality of racism in contracting,” said Johnson, per his statement.
