US Transportation Department Drops Biden Airline Compensation Plan

President Donald Trump's administration has officially abandoned a Biden-era proposal that would have required U.S. airlines to compensate passengers with cash, lodging, and meals for flight cancellations or significant delays caused by carriers. The rule, initially proposed in December under the Biden administration, aimed to align U.S. policies with European and other international airline consumer protections by mandating payments ranging from $200 to $775 depending on delay length. Airlines and industry groups opposed the plan, arguing it would increase ticket prices and create incentives that could compromise safety, while the Trump administration stated the withdrawal aligns with its policy priorities. Currently, U.S. airlines must refund passengers for canceled flights but are not obligated to compensate for delays, though many major carriers voluntarily offer meals and lodging for significant disruptions. The Biden administration viewed the compensation rule as an incentive for airlines to operate on time, whereas opponents worried it would shift power to consumers and labor unions, potentially raising costs. This move is part of a broader rollback by the Trump administration of consumer protection efforts initiated during Biden's tenure.