The Trump administration has abandoned a proposed federal rule that would have required U.S. airlines to pay passengers cash for certain prolonged flight delays. The Department of Transportation (DOT) published a withdrawal notice in the Federal Register on November 17, 2025, officially halting a plan first proposed under the Biden administration in 2023.
The 2023 proposal would have obliged airlines to compensate passengers between $200 and $750 if a flight was canceled or delayed three hours or more for reasons within the airline’s control—such as staffing shortages, mechanical issues, or computer-system failures. It would also have required airlines to reimburse out-of-pocket expenses like meals, hotels, and extra transportation incurred during disruptions.
Similar protections exist elsewhere: EU regulation (EU 261) and rules in other countries require airlines to make comparable payments and cover related costs. In the U.S., some carriers already voluntarily provide hotels, meals, and transport in long delays, but without a federal rule they can stop offering those perks at any time. U.S. travelers still retain the longstanding right to an automatic cash refund if they decline a voucher or rebooking when a flight is canceled—this rule remains unchanged.
Industry and policy reaction played into the DOT’s decision. DOT officials said the compensation proposal exceeded statutory requirements set by Congress and that the agency would implement only those protections mandated by law. Airlines and their trade group, Airlines for America, welcomed the move, calling the prior rule unnecessary and burdensome.
Travel-industry observers say the withdrawal preserves the status quo: passengers in the U.S. have not historically received automatic cash payments for delays, and keeping the proposal off the books avoids potential cost pass-through to fares. Brett Snyder, president of travel-assistance firm Cranky Concierge, noted travelers won’t see immediate differences because the U.S. system has not required delay payments.
The decision to drop the rule is part of a broader deregulatory turn at the DOT. Airlines for America submitted a 93-page list of suggested rollbacks this year that includes undoing requirements for clearer fee disclosures, reversing federal guidance on fair family seating, rescinding additional assistance mandates for travelers with mobility aids, and removing the DOT’s airline customer-service dashboard. Critics warn such rollbacks could weaken consumer protections; William McGee, a senior fellow on aviation and travel, said abandoning these measures favors airline lobbyists and risks leaving travelers with fewer safeguards.
For now, passengers should check individual carriers’ policies and the DOT’s customer-service dashboard for current practices, but those voluntary measures could change without a binding federal rule.
