Cheating Doesn't Pay Act - Directs the Secretary of Transportation (DOT) to issue a rule that: (1) prohibits the use of disadvantaged business enterprise program funds by any enterprise no longer eligible under the program; (2) each grant award, contract, or subcontract prohibits any program funds from being provided to an enterprise as soon as it is no longer eligible; (3) recuperates any unobligated program funds made available to any enterprise no longer eligible under the program; and (4) ensures that if an enterprise is no longer eligible to receive program funds, the Secretary takes appropriate measures to expedite bidding with other eligible enterprises to complete any project started by that enterprise.
Requires the Secretary, in cases where the enterprise is no longer eligible to receive program funds solely on the basis of its size, to allow it to complete any existing projects but not, however, be eligible for additional program funds for any new projects unless the state recertifies it.