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Minnesota

Minnesota Cuts DBE Participation Goals Amid Rule Changes

The state reduced participation targets following a federal overhaul of certification criteria.

Updated on Oct. 15, 2026 in Remote Work

Isometric editorial illustration of a traffic barrier and steel girder, representing structural policy shifts in Minnesota infrastructure contracting.
Minnesota’s Department of Transportation lowered DBE participation goals for infrastructure projects following new federal certification rules for state-contracted business firms. AI Illustration. Upload story photo >

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As of October 2026, the number of Minnesota Disadvantaged Business Enterprise (DBE) certified firms dropped from 944 to 305. The Minnesota Department of Transportation (MnDOT) subsequently lowered its highway and transit DBE participation goals.

Why it matters

The federal government updated certification rules to require applicants to demonstrate social and economic disadvantage through individual experience rather than race or gender. This policy shift led MnDOT to reevaluate all existing firms, significantly altering the landscape for state-contracted projects.

The Blatnik Bridge construction contract, valued at $930 million, allocates $16.5 million for DBE subcontracting, representing 1.77% of the total award. Bush Cos. reports a 90% decline in its annual project pipeline, falling from 100 projects to 10.

The players

MnDOT

The Minnesota Department of Transportation is responsible for planning, building, and maintaining the state's highway and transit infrastructure.

Bush Cos.

Based in Rochester, Minnesota, this firm reports a significant decline in its annual project pipeline due to the shifting DBE landscape.

J&L Jobsite Solutions

This construction-related entity ceased operations in February 2026 after facing changes in the business environment.

The details

Applicants must now prove individual disadvantage to qualify, resulting in a significant reduction in eligible businesses. Major projects like the Blatnik Bridge between Duluth, Minnesota, and Superior, Wisconsin, are proceeding without official DBE participation goals.

Timeline

  1. 1977: Loewen co-founded J&L Steel Erectors.

  2. 2021: Loewen acquired J&L Jobsite Solutions.

  3. February 2026: J&L Jobsite Solutions ceased operations and laid off employees.

  4. 2025-2027: The federal fiscal year period for updated MnDOT DBE goals.

  5. October 2026: MnDOT announced updated statewide DBE goals.

Market Landscape

The revision of the federal Disadvantaged Business Enterprise program forces a major contraction in the pool of eligible contractors for state projects. This realignment positions MnDOT to navigate a new procurement environment where historical participation goals are no longer reflective of current certification counts.

Businesses previously relying on DBE status for contract eligibility may experience significant drops in project pipelines. Average taxpayers and commuters may see changes in how infrastructure projects are bid and awarded as state agencies adjust to the new federal standards.

The takeaway

The sudden decrease in certified DBE firms underscores the sensitivity of state contracting to federal regulatory shifts. Contractors should re-evaluate their compliance strategies to ensure they meet the new individual-based criteria for social and economic disadvantage.

Further reading

For more context on how shifting policies influence regional labor and business environments, read our coverage on Remote Work.

Source note: This article includes information reported by Finance & Commerce.

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Should government contracts include specific participation goals for minority- and women-owned businesses?