The Trump administration has canceled the Biden era rule where airlines would have to compensate passengers for flight disruptions

The Trump administration announced Thursday it will scrap a plan from the Biden era that would have forced airlines to compensate passengers in cash for flight disruptions caused by carriers.

In December, the Department of Transportation under President Joe Biden had sought comment on a proposal requiring airlines to pay between $200 and $300 for domestic delays of at least three hours and up to $775 for longer delays. U.S. carriers pushed back hard against the idea.

In a notice posted Thursday, the White House said the DOT would withdraw the measure “consistent with department and administration priorities.” The DOT also said it is weighing rolling back a 2024 Biden rule requiring airlines and ticket agents to disclose service fees alongside airfare, a regulation currently on hold in court.

Instead, the department plans to draft new rules aimed at reducing regulatory burdens on airlines, including clarifying what constitutes a cancellation that requires a refund and revisiting pricing and advertising standards. Airlines for America, which represents major carriers such as Delta, United, and American, praised the move, arguing Biden’s proposal would have raised fares.

Airlines in the U.S. are already required to refund customers for canceled flights, but not for delays. Major carriers voluntarily agreed in 2022 to cover meals, hotel stays, and related costs when delays were their fault. Unlike the U.S., regions such as Canada, Brazil, the European Union, and the United Kingdom mandate cash compensation for significant delays.

The Trump administration has also reversed other Biden-era consumer efforts in aviation. In May, the Justice Department dropped a lawsuit against Southwest Airlines that had accused the company of illegally operating chronically delayed flights.