The Trump administration has formally withdrawn a Biden-era plan that would have required airlines to provide cash compensation to passengers for significant flight delays caused by carriers. The decision, which aligns with the administration's priority to reduce regulatory burdens on businesses, leaves the United States without a federal mandate for delay compensation that exists in many other parts of the world .
The proposed rule, initially introduced by the Biden administration in 2023 and opened for public comment in December 2024, sought to establish mandatory cash payments for passengers experiencing major flight disruptions within the airlines' control . The specific compensation structure would have provided between $200 and $300 for domestic delays lasting at least three hours, and up to $775 for longer delays . This policy would have brought the U.S. closer to standards in regions like the European Union, Canada, and Brazil, where such passenger compensation rules are already standard .
The U.S. Department of Transportation (USDOT), under the Trump administration, officially withdrew the proposal on November 14, 2025. In its explanation, the agency stated that the rules would create "unnecessary regulatory burdens" and impose significant costs on airlines . The preferred approach is to allow airlines to compete voluntarily on the services and compensation they offer to passengers, rather than being subject to federal minimum requirements .
The decision was met with disapproval from Democratic lawmakers. Last month, a group of 18 Democratic senators, including Richard Blumenthal, Maria Cantwell, and Ed Markey, sent a letter urging the administration to keep the plan, calling it a "common-sense proposal" for when airline mistakes impose unexpected costs on families . Conversely, the move was applauded by airline industry groups, which had pushed for the rule's removal .
With the withdrawal of this plan, the existing framework for passenger rights remains in place. U.S. airlines are still required to refund passengers for canceled flights, but they are not federally mandated to provide cash compensation for delays . While many airlines voluntarily offer amenities like hotel vouchers or meal credits during extensive delays within their control, no major U.S. carrier currently guarantees cash compensation for significant disruptions . This decision is part of a broader regulatory shift, as the USDOT is also considering rescinding other Biden-era regulations, including rules that require upfront disclosure of airline service fees .