The Trump administration is pulling back on a key consumer protection measure championed by President Joe Biden, one that would have required airlines to pay passengers cash compensation for flight disruptions caused by carriers.
On Thursday, the U.S. Department of Transportation (USDOT) confirmed it will withdraw the Biden-era proposal, which sought to mandate payouts ranging from $200–$300 for domestic flight delays of three hours or more and up to $775 for longer delays. Airlines had fiercely opposed the measure, arguing it would increase ticket prices.
“The decision is consistent with department and administration priorities,” the White House said in a document posted online.
Airlines for America, the trade group representing major carriers including American, Delta, and United, praised the reversal.
Currently, U.S. carriers must refund passengers for canceled flights but are not legally required to compensate them for delays. While airlines in 2022 voluntarily committed to covering meals, hotels, and rebooking when disruptions are their fault, passengers don’t have access to the kind of cash compensation rules that exist in places like Canada, Brazil, the U.K., and the European Union.
The DOT also disclosed Thursday that it is considering rescinding another Biden-era regulation issued in April 2024, which required airlines and ticket agents to disclose all service fees alongside airfares. That rule, designed to help consumers avoid hidden or unexpected costs, was already on hold after airlines mounted a legal challenge.
Instead, the Trump administration will focus on reducing regulatory burdens, including rewriting the definition of a flight cancellation that entitles passengers to refunds and revisiting rules around ticket pricing and advertising.
In May, the administration also dropped a Biden-era Justice Department lawsuit against Southwest Airlines, which alleged the carrier had illegally operated chronically delayed flights.
Consumer advocates warn that without stronger protections, passengers will continue to bear the brunt of disruptions. But with the Trump administration prioritizing deregulation, the outlook for Biden’s proposed compensation system looks all but grounded.
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