Trump Administration Reverses Biden’s Proposal to Compensate Travelers for Airline Delays

The Trump administration has formally scrapped a Biden-era proposal that would have required airlines to compensate passengers for lengthy delays caused by issues within the carrier’s control. The withdrawal was published Monday in the Federal Register, officially ending the Department of Transportation’s (DOT) advance rulemaking process initiated in December under President Joe Biden.

The proposed system would have offered tiered compensation, beginning at $200 for three-hour delays and rising to $775 for delays of nine hours or more. Though never enacted, the plan aimed to bring U.S. consumer protections closer to European Union standards, where compensation for airline-caused disruptions has been in place for nearly two decades.

A DOT spokesperson said the Biden plan “does not reflect the compensation consumers are currently entitled to,” adding that the administration’s broader goal is to protect passengers “without imposing overly burdensome regulations” that could raise ticket prices or affect operational safety. The Trump administration has argued that deregulation fosters innovation and competition, ultimately benefiting travelers.

Airlines and industry groups strongly lobbied against the proposal, claiming mandatory compensation would lead to higher fares and reduced route availability. Consumer advocates, however, said the plan would have been a “historic step” toward accountability and noted that it included protections for travelers with disabilities, who often face disproportionate challenges during delays and cancellations.

Ultimately, the DOT concluded that additional regulation “does not correspond” with the administration’s priorities. The agency also highlighted that several airlines already offer limited redress, such as freee rebooking or travel credits, although none currently provide direct cash compensation for controllable delays.

(Source: nbcnews.com)