Trump administration drops Biden-era plan for airline cash compensation on flight delays

The U.S. Department of Transportation (DOT) has scrapped a Biden-era proposal that would have required airlines to pay passengers $200–$775 in cash for significant flight delays or cancellations caused by carriers. The rule, introduced in 2023, never took effect and faced strong opposition from airlines, which warned it would raise fares and disrupt operations.

The Trump administration said withdrawing the plan aligns with its deregulatory agenda. Airlines are still required to refund tickets for cancelled flights when passengers choose not to travel, but there is no cash compensation mandate for delays. Instead, carriers generally provide rebooking, meals, and lodging vouchers.

The DOT is also reviewing or considering repealing other Biden-era consumer protection rules, including one requiring airlines to disclose service fees upfront and another defining what constitutes a cancellation that triggers refunds. Airline industry groups welcomed the rollbacks, calling them a step toward reducing “unnecessary and burdensome regulations.”

By contrast, consumer protections in regions like Canada, Brazil, the EU, and the UK already mandate cash compensation for delays.