No cash or free meals: Trump shelves Biden-era airline compensation rules

The Trump administration has decided to abandon a plan introduced in the final weeks of former President Joe Biden’s term that would have required airlines to compensate passengers for delays and cancellations caused by carriers. The US Department of Transportation (DOT) said in a filing on Thursday that withdrawing the proposal is “consistent with Department and administration priorities.”

What the Biden plan proposed

The proposed rule sought to bring US policy closer to European standards on passenger rights. It would have required airlines to pay at least $200 to passengers when domestic flights were delayed for three hours or more due to mechanical issues or computer outages. The fines increased to $375–$525 for delays of six to nine hours, and up to $775 for delays of nine hours or longer.

The plan also included provisions for cash, lodging, meals, and free rebooking on the next available flight — including flights on rival airlines — if passengers were stranded overnight. The Biden administration described the measure as a “game changer” for travelers frustrated by frequent disruptions.

Airlines strongly opposed the proposal. Spirit Airlines, in a public comment earlier this year, argued it would raise operating costs and lead to higher fares. “There is no free lunch,” Spirit said. “If every time a flight has to be cancelled due to, say, an aircraft maintenance issue, airlines were required to pay each affected passenger $300 plus hotel and meals, there would be a perverse incentive to cancel flights preemptively at any hint of trouble.”

Spirit, which recently filed for Chapter 11 bankruptcy protection for the second time in a year, also announced plans to suspend operations next month in about a dozen cities.

Airlines for America, the trade group representing major carriers including United, Delta, and Southwest, welcomed the Trump administration’s move. “We are encouraged by this Department of Transportation reviewing unnecessary and burdensome regulations that exceed its authority and don’t solve issues important to our customers,” it said in a statement.

Current passenger protections

Airlines in the US currently provide limited assistance during cancellations or severe delays, but the extent of help often depends on individual airline policies and is not backed by federal rules. Passengers usually need to request assistance at the airport.

The DOT said it will continue to enforce aviation consumer protection rules mandated by Congress but will reconsider requirements that go beyond statutory authority.