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US drops Biden plan to require airlines to pay compensation for disrupted flights
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US drops Biden plan to require airlines to pay compensation for disrupted flights
Sep 4, 2025 9:50 AM

WASHINGTON, Sept 4 (Reuters) -

President Donald Trump's administration said on Thursday it

will drop a plan by his predecessor to require airlines to pay

passengers cash compensation when U.S. flight disruptions are

caused by carriers.

In December, the U.S. Transportation Department under then

President Joe Biden sought public comment on the rulemaking

process about whether airlines should be required to pay

$200-$300 for domestic delays of at least three hours and up to

$775 for longer delays. U.S. airlines sharply criticized the

proposal.

The White House said in a document posted on Thursday that

USDOT plans to withdraw the notice "consistent with department

and administration priorities."

In May 2023, Biden said his administration would write rules

requiring airlines to compensate passengers for disrupted

flights.

Airlines for America, a trade group representing American

Airlines ( AAL ), Delta Air Lines ( DAL ), United Airlines

others, did not immediately comment but said last year

that Biden's plan would raise ticket prices.

Airlines in the U.S. must refund passengers for canceled

flights, but are not required to compensate customers for

delays. Major carriers in 2022

committed to paying for meals

, hotel stays and other expenses when they cause significant

flight disruptions.

Canada, Brazil, the European Union and the United

Kingdom all have airline delay compensation rules.

In December, USDOT said it was considering if airlines

must cover meals, hotel stays and other costs after carrier

disruptions and whether to require airlines to rebook passengers

on their next available flights, or if flights are unavailable

for 24 hours, potentially requiring them to use competitors.

The Trump administration has taken other steps to

reverse Biden airline consumer efforts.

In May, the Justice Department

dropped a lawsuit against

Southwest Airlines ( LUV ) filed by the Biden administration in its

final days that accused the carrier of illegally operating

chronically delayed flights.

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