The Disadvantaged Business Enterprise (DBE) program, a $37 billion federal initiative, has historically aimed to support minority- and women-owned businesses by allocating at least 10% of federal transportation funding to these groups. Recent legal challenges have led to moves to dismantle the program, citing constitutional concerns over race and gender considerations in awarding contracts .(
The Washington Post)
Beneficiaries by Race and Gender
Race-Based Beneficiaries:
- Black-Owned Businesses: In fiscal year 2020, Black-owned small businesses received approximately 1.7% of federal contracting dollars . Additionally, a 2021 McKinsey report noted that Black-owned businesses generated $59.6 billion in revenue in 2022, marking a 4.6% increase from the previous year .(The White House, Farris Legal Services LLC)
- Hispanic-Owned Businesses: These businesses received about 1.8% of federal contracting dollars in FY 2020 . In 2022, their revenue totaled $77.7 billion, a 23.3% increase from 2021 .(The White House, Farris Legal Services LLC)
- Asian-Owned Businesses: Asian American and Pacific Islander-owned small businesses received approximately 2.8% of federal contracting dollars in FY 2020 . Their revenue in 2022 was $94.4 billion, a 34.9% increase from the previous year .(The White House, Farris Legal Services LLC)
- Native American-Owned Businesses: These businesses generated $13.5 billion in revenue in 2022, reflecting a 12.5% increase from 2021 . Specific federal contracting percentages for this group were not detailed in the available data.
Gender-Based Beneficiaries:
Women-owned businesses have also significantly benefited from the DBE program. For instance, in Mississippi, 87% of DBE funds—approximately $19.5 million out of $22.4 million—were awarded to women-owned businesses. Similarly, in Indiana, women received 68% of DBE funds, amounting to $21.5 million out of $31.5 million .(
The Washington Post,
Congress.gov)
Summary
The DBE program has played a crucial role in supporting minority- and women-owned businesses, providing them with access to federal contracts and contributing to significant revenue growth across various demographics. The recent legal challenges and potential dismantling of the program raise concerns about the future support for these businesses and the broader implications for diversity and inclusion in federal contracting.(
The Washington Post)