COMPLIANCE CORNER - AUGUST 2025

NYS Extends MWBE Program Through July 1, 2028, and USDOT Makes Changes to FHWA DBE Program Language

Article 15-A of the NYS Executive Law has been officially extended through July 1, 2028. The extension was enacted as Part KK of the New York State Fiscal Year 2025-26 budget bill. The extension ensures the continued promotion of opportunities for Minority- and Women-Owned Business Enterprises (MWBEs) in state contracting and procurement and New York’s ongoing commitment to diversity, equity, and inclusion in public contracts. Thus far, the existing rules for eligibility, certification, and participation in the MWBE program remain the same.

Note that recent Trump Executive Orders do not directly affect Article 15-A’s legal authority or implementation in New York State. However, they may influence related federal funding requirements or contractor compliance policies, so it remains critical to stay informed and monitor federal guidance. As a contractor it is important to review your compliance program and ensure alignment with both federal and state laws and regulations.

For contractors performing bridge work on FHWA funded projects, it is important to take note of the contractual language. The USDOT issued a press release June 2, 2025, eliminating certain climate change, environmental justice, “DEI”, and workforce requirements as it applies to $4.9 billion in available funding for major bridge projects and up to $500 million for repairing and replacing bridges in rural areas. You can read the full press release here: https://www.transportation.gov/briefing-room/president-trumps-transportation-secretary-sean-duffy-announces-availability-54. The press release included an example of the language the Trump Administration removed:

Examples of Removed Language of DEI and Workforce Development Requirements

“Applicants must address how their project will include an equity assessment which evaluates whether a project will create proportional impacts and remove transportation related disparities to all populations in a project area.”

“Applicants must address how their project will create good-paying jobs with the free and fair choice to join a union; promote investments in high-quality workforce development programs with supportive services to help train, place, and retain people in good-paying jobs or registered apprenticeship, with a focus on women, people of color, and others that are underrepresented in infrastructure jobs (people with disabilities, people with convictions, etc.); and change hiring policies and workplace cultures to promote the entry and retention of underrepresented populations.

“Applicants should address how the project promotes local inclusive economic development and entrepreneurship such as the use of Disadvantaged Business Enterprises (DBE), Minority-owned Businesses, Women-owned Businesses, or 8(a) firms.”

If you would like more information or assistance with a Form I-9 Audit, kindly reach out to Lorraine D’Angelo, lorraine@ldaconmplianceconsulting.com or call (914) 548-6369.