Overview

• The shelved proposal, introduced under President Biden, would have required airlines to pay passengers $200–$300 for domestic delays of three to six hours and up to $775 for very long delays.
• The rule never took effect before the Trump administration formally withdrew it, ending the push to align U.S. policy more closely with European-style compensation.
• Airlines for America, representing major carriers, praised the move and argued the mandates would raise ticket prices and overstep DOT authority.
• DOT said it is weighing the repeal of an April 2024 rule requiring upfront disclosure of ancillary fees and plans to redefine what counts as a cancellation that triggers a refund, with related pricing and advertising rules also under review.
• U.S. policy remains unchanged: passengers are entitled to refunds for canceled flights, not cash for delays, while many airlines voluntarily provide meals, hotels and rebooking during carrier-caused disruptions.