Resolution adopting the Mass Transit Disadvantaged Business Enterprise (DBE) Program.

Adoption of the attached resolution.

In April 2024, the Department of Transportation (DOT) published the Final Rule to modernize and streamline program regulations for the Disadvantaged Business Enterprise (DBE) Program and provided recipients with time to transition to the new requirements. Previously, Transit was not required to have its own DBE Program, receiving program goals from MnDOT.

As part of the DOT Final Rule, a new tiered system was developed for FTA grant recipients:

• Tier I Recipients award more than $670,000 in federal transit funding in a federal fiscal year, not including bus purchases.
• Tier II Recipients award $670,000 or less annually in a federal fiscal year, not including bus purchases, with abbreviated reporting requirements.

Mankato Transit’s Disadvantaged Business Enterprise (DBE) Program is designed to ensure full compliance with federal regulations 49 CFR § 26 governing the equitable inclusion of small businesses owned by socially and economically disadvantaged individuals.  As a recipient of Federal Transit Administration (FTA) funding—including planning, capital, and operating assistance—alongside Federal Aid Highway Program funds, the agency recognizes its legal and ethical responsibility to maintain a Program that is not only compliant, but also impactful.
Recognizing the dynamic nature of transit funding and operational expansion, this Program proactively addresses the requirements of both Tier I and Tier II classifications. This tier-conscious approach ensures that, should Mankato Transit experience a shift in federal funding levels or operational scale, the transition between program tiers will be seamless and compliant.