US transportation contracts can no longer assume minority-owned businesses are disadvantaged

The US Department of Transportation has removed rules that automatically assumed certain businesses were disadvantaged based on race or sex. This means businesses seeking special consideration for federal transportation contracts will now have to prove their disadvantage individually.

For decades, federal programs have used race and sex as automatic indicators of disadvantage to help certain businesses secure contracts. This change means that the burden of proof shifts entirely to the business itself. It will likely make it harder for many small businesses to qualify for these programs, especially those that previously relied on the automatic presumption.