For a brief moment, it looked like US travelers might finally get automatic cash when an airline’s own problems wrecked their plans.
The Department of Transportation, under former President Joe Biden, drafted a rule requiring carriers to pay passengers at least $200 and up to $775 for the longest holdups. The compensation would cover meals, hotels, ground transport and rebooking when disruptions were within the airline’s control.
But no longer. On Sept. 5, the Trump administration’s DOT officially withdrew that plan, saying the move aligns with its priorities to roll back regulations it perceives as burdensome.
In practical terms, nothing changes for US flyers. There’s still no legal right to cash compensation for delays or most cancellations, and protections will continue to depend on airline policies and existing refund rules.
The decision caps a years-long tug-of-war over how far the government should go to police air travel disruptions. The shelved Biden-era rule aimed to push the US closer to Europe’s EU261 framework, which requires compensation when airline-caused problems delay arrivals by 3 hours or more (with exceptions for extraordinary circumstances, like severe weather). Industry groups argued Biden’s approach would raise costs and reduce choice, while consumer advocates said it would finally attach real consequences to controllable meltdowns.
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Despite the plan’s withdrawal, lighter-touch refund rules finalized by the DOT in 2024 are still active. Those require airlines to issue automatic cash refunds when flights are canceled or significantly changed, when checked bags are significantly delayed and when paid extras (like Wi-Fi) aren’t provided. Airlines must also notify passengers of their refund rights before pushing vouchers.
That’s meaningful, but it’s not the same as compensation. Sure, you can get your money back if you don’t travel, but you can’t receive extra cash for your time and hassle when an airline-caused delay strands you.
Instead, what you get during “controllable” disruptions (IT system failures, aircraft maintenance, etc.) still depends on your carrier’s public promises. The DOT’s Airline Cancellation and Delay Dashboard lists what each airline says it will do: meal vouchers after three hours, hotel nights for overnights, rebooking on a partner airline and so on. The government agency can hold airlines accountable for those commitments. But such policies are not statutory obligations, and they vary by airline.
The long-floated idea that US travelers would automatically receive cash when an airline’s missteps derail a trip is off the table for now. Refunds are clearer and faster than they used to be, but if you want EU-style compensation for delays, you’re out of luck in the US.
