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AGENDA RECOMMENDATION |
Consent Calendar 6.N.
City Council Regular Meeting
- Meeting Date:
- 01/12/2026
Agenda Item:
Resolution authorizing the adoption of the Transit Disadvantaged Business Enterprise Program.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
Recipients of funding distributed by the Department of Transportation (DOT) are subject to the requirements of the Disadvantaged Business Enterprise Program, under which they must set goals for participation by small businesses owned and controlled by “socially and economically disadvantaged” individuals. This is an update to the existing September 22, 2025, program.
On October 3, 2025, the DOT determined that the Disadvantaged Business Enterprise Program’s race and sex-based presumptions are unconstitutional and issued an interim final rule removing the presumptions from the program. This requires a revision to remove the presumptions from the definition of “socially and economically disadvantaged individual,” instead the owner of the small business must demonstrate on a case-by-case basis that they meet the criteria.
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.
On October 3, 2025, the DOT determined that the Disadvantaged Business Enterprise Program’s race and sex-based presumptions are unconstitutional and issued an interim final rule removing the presumptions from the program. This requires a revision to remove the presumptions from the definition of “socially and economically disadvantaged individual,” instead the owner of the small business must demonstrate on a case-by-case basis that they meet the criteria.
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.