How the Trump Administration is Tackling Discrimination in Transportation Contracts

Federal Government Shutdown Sparks Debate Over Transportation Infrastructure Discrimination

Government Shutdown Brings Infrastructure Funding to a Standstill

The partial federal government shutdown on October 1, 2025, initiated extensive debates surrounding government spending levels, healthcare subsidies, and the designation of “essential” federal services. As discussions unfolded, the Department of Transportation (DOT) introduced another critical issue: alleged discriminatory practices by state and local transportation bodies in awarding infrastructure project contracts.

In response, the DOT announced a freeze on funding for significant projects in New York and Chicago pending administrative reviews. These reviews, however, remain stalled due to the government shutdown. Democratic leaders, including Hakeem Jeffries and Charles Schumer, criticized the administration’s actions as political retribution from President Trump. However, when analyzed in context, these moves might lead to improved infrastructure policies in the U.S.

The Role of Disadvantaged Business Enterprises in Infrastructure Contracting

Created by Congress in the Surface Transportation Assistance Act of 1982, the Disadvantaged Business Enterprise (DBE) category aims to ensure that a portion of transportation funding supports small businesses owned by socially and economically disadvantaged individuals, including women and racial minority groups. Although the law targets a funding allocation of 10% for DBEs, state and local agencies enjoy the freedom to set their specific goals, without being bound by specific quotas or set-asides, as prohibited by a 1999 DOT rule.

Federal guidance encourages the attainment of DBE goals primarily through “race-neutral” methods, although agencies may resort to “race-conscious” methods if necessary to fulfill these objectives.

Current Trends in DBE Policy Implementation

Recent reviews highlight that “race-conscious” actions play a crucial role in achieving DBE goals. For instance:

• The Chicago Transit Authority plans project that race-neutral methods will contribute minimally to their 21% DBE goal from 2025 to 2027.
• The Los Angeles County Metropolitan Transportation Authority’s strategy shows recent reliance on “conscious attainment” over “neutral attainment.”
• The transit agencies in Philadelphia and Washington D.C. follow a similar trend, with “conscious” efforts significantly impacting their DBE objectives.

Legal Scrutiny and Calls for Policy Reformation

The inclusion of DBE goals paralleled the broader affirmative action movement, prompting debates on whether such initiatives constitute governmental discrimination. The 2023 Supreme Court ruling in Students for Fair Admissions v. Harvard, which invalidated “race-conscious” admissions policies, marked a shift in the legal outlook towards these practices. Similarly, a 2024 ruling by the Eastern District Court of Kentucky questioned the constitutionality of the DBE program, suggesting that it fosters unfair competition based on identity.

Moreover, President Trump’s Executive Orders 14151 and 14173 advocate for eliminating identity-based discrimination, reflecting a growing governmental consensus on reevaluating DBE policies. Consequently, in June 2025, the DOT issued new certification standards aligned with these principles.

Legislative Opportunities and Future Directions

Given the forthcoming expiration of Highway Trust Fund program authority in 2026, Congress has an opportunity to reassess and potentially reformulate DBE policies in upcoming legislation. By acknowledging the Trump Administration’s findings on identity-based discrimination as unconstitutional, lawmakers could redefine the approach to DBE initiatives, ensuring alignment with the U.S. Constitution’s mandate for equal treatment.

Committees should remain proactive, as demonstrated by the House Committee on Government Oversight and Accountability’s hearing on June 25, 2025, in scrutinizing government-sanctioned discrimination. Embracing reforms within the DBE program could pave the way for a fairer and more inclusive infrastructure contracting landscape.