The Trump administration has formally dropped a Biden-era proposal that would have required airlines to pay passengers cash compensation when flights were significantly delayed or canceled for reasons within the carrier’s control.
According to reporting from AP, “in a document posted Thursday, President Donald Trump’s Transportation Department said its plan to scrap the proposed rule is “consistent with Department and administration priorities.” Trump has sought to significantly roll back or modify federal regulations that his administration deems are wasteful or burdensome.”
What the Biden Administration Proposed
In December 2024, the Department of Transportation (DOT) under President Joe Biden announced a draft rule that aimed to expand passenger rights. The proposal would have required airlines to pay:
-$200–$300 for domestic delays of at least three hours.
-Up to $775 for longer delays.
-Plus reimbursement for meals, hotels and rebooking, potentially even on competing airlines if the original carrier couldn’t provide a timely alternative.
The idea was to bring U.S. air travel protections closer to those in the European Union, Canada, Brazil and the United Kingdom, which already have rules in place regarding passenger compensation for flight delays and cancellations.
The DOT had opened the proposal for public comment but had not finalized or enforced it. That means passengers never actually received these cash payments. It was a plan under consideration, not an existing right.
The Trump Administration’s Decision
On September 4, 2025, the DOT under President Donald Trump announced it would withdraw the rulemaking process entirely, saying it lacked clear congressional authority and would impose unnecessary costs on airlines.
According to Reuters, “Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines and others, praised the actions and said Biden’s cash compensation plan would have raised ticket prices.”
Without the proposed rule, U.S. travelers continue to have more limited protections than in many other regions:
-Airlines are required to refund passengers if a flight is canceled and the traveler chooses not to fly.
-They are not required by law to provide cash compensation for delays, even lengthy ones, unless written into an airline’s own customer service policy.
-Many airlines voluntarily offer vouchers, meals, or hotel stays during disruptions, but these are not guaranteed by federal law.
So for now, U.S. travelers remain without mandated cash payments for flight delays or cancellations, which means you’ll have to rely on whatever voluntary assistance airlines choose to provide.
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