The Trump administration said Thursday it will abandon a Biden-era proposal that would have required airlines to provide cash compensation and cover lodging and meals for passengers when carriers cause flight cancellations or significant schedule changes.
The proposed rule, put forward in the final weeks of the Biden administration last December, aimed to bring U.S. airline consumer protections closer to the standards used in Europe by obligating carriers to reimburse passengers for certain delays and disruptions under carrier control. The Transportation Department posted a document on Thursday saying its plan to withdraw the proposal is "consistent with Department and administration priorities."
The proposal would have required airlines to provide cash payments to stranded passengers and pay for lodging and meals when disruptions were caused by a carrier rather than by factors such as weather or air traffic control. The rule was announced in December, leaving its ultimate fate to President Donald Trump after he took office.
The decision to withdraw the rule reverses a consumer-centered initiative that had generated debate between passenger advocates and industry representatives. Airlines for America, a trade group that represents major U.S. carriers including United, Delta and Southwest, has argued that such mandates could impose burdensome costs and operational constraints on airlines.
Administration officials have sought to roll back or modify federal regulations they deem overly burdensome, and the Transportation Department said the move to rescind the proposed rule is aligned with those priorities. The department did not release a detailed timeline for any alternative rulemaking or guidance addressing passenger protections for carrier-caused disruptions.
Consumer advocates had welcomed the Biden administration proposal as a step toward clearer, enforceable rights for travelers, saying it would ensure passengers are compensated when airlines are responsible for cancellations and lengthy delays. The proposal stopped short of guaranteeing compensation in every circumstance and would have applied only to disruptions attributable to the carrier.
With the withdrawal, passengers and consumer groups will continue to rely primarily on existing Department of Transportation rules, individual carrier policies, and state-level protections. The agency's action leaves unresolved whether federal policy will move toward more expansive compensation requirements or maintain the current approach that places greater discretion with airlines.
Transportation Department officials and representatives of affected airlines had not provided immediate additional comment on Thursday. The posted document ends the formal rulemaking originating under the previous administration but does not preclude future proposals on airline consumer protections.
The decision underscores an ongoing priority for the Trump administration to pare back regulations enacted under its predecessor and reflects continuing debate over the appropriate balance between consumer protections and regulatory burdens in the airline industry.