The Trump administration has decisively blocked a proposed rule that would have mandated airlines to compensate travelers with cash payments of up to $750 for certain flight delays.
For many Americans, the struggle to receive compensation for flight delays and cancellations has long been a significant frustration—especially for those who have experienced the more robust protections offered to airline passengers in Europe and Canada.
Under the Biden administration, the Department of Transportation (DOT) had made addressing this issue a critical priority. However, this commitment faltered as the DOT has now officially scrapped a federal plan that sought to alleviate the financial strain of extended flight delays for passengers in the United States.
Originally introduced in 2023, the proposal aimed to require U.S. airlines to pay passengers cash if their flights were canceled or delayed by three hours or more due to factors within the airline’s control. On November 17, 2025, the DOT formally announced its withdrawal of the proposal in the Federal Register, a decision framed as part of the administration’s wider push for deregulation and reflective of input received from both airlines and consumers.
Had the regulation been implemented, affected passengers would have received compensation ranging from $200 to $750 for disruptions caused by issues such as airline staffing shortages, mechanical failures, or the increasingly prevalent computer system failures. Additionally, airlines would have been required to cover any extra costs incurred by passengers during these disruptions, including meals, accommodations, and transportation.
Such compensation policies are standard in many other countries, particularly in Europe, where EU regulation 261 mandates that all airlines operating within the European Union provide similar payments to delayed travelers while also covering associated costs.
Currently, many U.S. airlines voluntarily offer to reimburse travelers for meals, hotels, and transportation during significant delays. However, the absence of a formal rule means that these airlines are not legally obligated to provide such assistance and could cease these practices at any time. Notably, several U.S. carriers only began covering these additional expenses following the Biden administration’s encouragement in 2022.
In terms of cancellations, U.S. airlines are still required to issue automatic cash refunds if you choose not to accept a flight voucher or a rebooking option. This policy remains unaffected and continues to be a federal regulation. Here’s what else you should know.
