The Trump administration will withdraw a consumer protection proposal that would have required airlines to compensate passengers for flight delays and cancellations. The decision, announced on September 4, 2025, reverses a key Biden-era initiative that aimed to align U.S. airline regulations with international standards established by the European Union, Canada, and Brazil. According to a Reuters report, the proposed rule would have established a comprehensive framework requiring airlines to provide financial compensation ranging from $200 to $775 for delays exceeding three hours, depending on the length of the disruption.
The Department of Transportation, under the Biden administration, introduced the proposal in May 2023 and solicited public comments in December 2024. However, the current administration has now determined that the regulation would create an unnecessary burden on airlines and potentially lead to increased ticket prices for consumers.
Airlines And Consumer Advocates Respond
The airline industry welcomed the Trump administration’s decision to withdraw the compensation requirements. Airlines for America, the industry’s leading trade group representing major carriers such as American Airlines, Delta Air Lines, and United Airlines, had opposed the Biden-era proposal, arguing that it would increase ticket prices.
Citing Reuters, a spokesperson for Transportation Secretary Sean Duffy said the department “will faithfully implement all aviation consumer protection requirements mandated by Congress,” but noted that some rules proposed or adopted under Biden “went beyond what Congress has required by statute, and we intend to reconsider those extra-statutory requirements.”
However, consumer advocates expressed disappointment with the decision to withdraw the compensation plan. Bharat Ramamurti, a former economic adviser to President Biden, criticized the move, stating that the rule “would have helped passengers and reduced delays,” as reported by Reuters.
The New York Times highlighted that the Transportation Department is also considering easing other regulations. Among the rules being reviewed are those that define what kinds of flight disruptions entitle consumers to ticket refunds and timely bag delivery.
