The Trump Administration has officially scrapped a Biden-era proposal that would have forced airlines to pay passengers cash compensation for flight delays and cancellations.
A White House document posted Thursday confirmed the Department of Transportation will withdraw the rule first pushed by Joe Biden in May 2023.
At the time, Biden promised air travelers that new regulations would require airlines to cover cash payouts, along with meals and hotel rooms, when disruptions were the airline’s fault.
His administration floated payments ranging from $200 to $300 for domestic delays of at least three hours, and up to $775 for longer disruptions.
But Trump’s Department of Transportation said the rule had been withdrawn “consistent with department and administration priorities.”
Airlines immediately welcomed the reversal.
Airlines for America, a trade group representing American, Delta, and United, praised the decision and claimed Biden’s plan would have spiked ticket costs, per the Daily Mail.
“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,” the group said.
Under current law, airlines must refund customers when a flight is canceled, but there is no requirement to compensate passengers for delays.
Former Biden adviser Bharat Ramamurti blasted Trump’s decision, saying Biden’s rule “would not only have put real cash back in your hands for badly delayed or canceled flights, but would have resulted in far fewer delayed and canceled flights in the first place.”
The Department of Transportation also revealed it is reviewing several additional Biden-era airline regulations.
That includes a 2024 rule requiring airlines and ticket agents to disclose service fees alongside fares to help consumers avoid hidden charges. That regulation was put on hold after a court challenge from the airline industry.
The agency is also drafting new rules on what counts as a cancellation eligible for refunds and plans to revisit Biden’s regulations on advertising and ticket pricing.
A spokesperson for Transportation Secretary Sean Duffy said the administration “will faithfully implement all aviation consumer protection requirements mandated by Congress.”
The department also argued that some of Biden’s rules “went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
Airline companies had already made voluntary commitments in 2022 to cover hotel stays, meals, and other expenses when delays were their fault. Trump officials say those commitments show the market can handle the issue without government intervention.
In another reversal earlier this year, the Justice Department under Trump dropped a Biden-era lawsuit against Southwest Airlines. That suit alleged the carrier operated chronically delayed flights illegally.
The administration has made clear it will continue to peel back Biden’s consumer regulations, prioritizing deregulation and lower compliance costs for airlines.
