Washington, DC, September 6 - Under the Trump administration, the U.S. Department of Transportation has officially withdrawn a Biden-era proposal that would have mandated airlines to provide cash compensation to passengers for flight disruptions caused by carriers. Announced in May 2023 by then-President Joe Biden and Transportation Secretary Pete Buttigieg, the plan aimed to enhance airline passenger rights by requiring airlines to pay $200 to $300 for domestic flight delays of at least three hours and up to $775 for delays exceeding nine hours. The proposal opened for public comment in December 2024. It was designed to align U.S. aviation consumer protections with those in regions like the European Union, Canada, Brazil, and the United Kingdom, where compensation for airline-caused disruptions is standard. However, the rule faced significant opposition from U.S. airlines, which argued it would increase operating costs and lead to higher ticket prices, ultimately impacting travelers. The decision to scrap the plan, confirmed in a White House document on September 4, 2025, reflects the current administration’s priorities to reduce regulatory burdens on the airline industry, marking a setback for aviation consumer advocates seeking stronger protections for travelers.
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The Biden administration’s proposal addressed the frustrations of passengers facing delays and cancellations due to factors within airlines’ control, such as mechanical issues or system outages. In addition to cash payments, the plan considered requiring airlines to cover meals, lodging, and ground transportation for stranded passengers and free rebooking on the next available flight, even on rival carriers if necessary. A 2023 study cited by Biden, published in the journal Transport Policy, highlighted that similar regulations in the European Union had improved airline punctuality and reduced delays, suggesting potential benefits for U.S. travelers. Despite these arguments, major U.S. carriers, represented by the trade group Airlines for America, including American Airlines, Delta Air Lines, and United Airlines, opposed the measure, claiming it would strain their operations and raise fares, particularly for price-sensitive travelers. The withdrawal of the proposal means U.S. airlines are not obligated to provide cash compensation for delays, though they must still issue refunds for canceled flights under existing regulations.
The decision to abandon the compensation plan is part of a broader effort by the Trump administration to roll back Biden-era aviation consumer protections. For instance, in May 2025, the Justice Department dropped a lawsuit against Southwest Airlines, initiated by the Biden administration, which accused the carrier of illegally operating chronically delayed flights. Additionally, the Transportation Department is reviewing other regulations, such as a 2024 rule requiring airlines to disclose service fees alongside airfares to prevent unexpected costs for consumers. A spokesperson for Transportation Secretary Sean Duffy emphasized that the department would continue to enforce congressionally mandated protections but intends to reconsider rules that exceed statutory requirements. Critics, including consumer advocates, argue that this move leaves the U.S. lagging behind global standards, as passengers in other countries benefit from robust compensation frameworks that incentivize airlines to minimize disruptions.
While the proposed compensation rule never took effect, some consumer protections remain intact. A 2024 DOT regulation requires automatic cash refunds for canceled or significantly changed flights, undelivered paid services like Wi-Fi, and qualifying baggage delays. However, without mandatory compensation for delays, passengers rely on airlines’ voluntary policies, which often require travelers to request assistance at airports and lack the enforceability of federal rules. Airlines for America praised the withdrawal, arguing that it prevented unnecessary regulations that could harm customers through higher fares. Meanwhile, consumer groups highlight that the absence of mandatory compensation leaves U.S. passengers vulnerable compared to those in regions with established protections. Travelers affected by disruptions can still file complaints with the DOT’s Aviation Consumer Protection Division, which may prompt enforcement actions or future policy changes. However, the current deregulatory stance suggests limited immediate progress on enhancing passenger rights.
