Trump axes Biden plan that would have forced airlines to pay passengers cash for delays

The Trump administration on Friday rescinded a Biden-era proposal that would have required airlines to compensate passengers in cash for U.S. flight disruptions caused by carriers.

White House officials in 2023 said the Federal Aviation Administration (FAA) would issue new rules forcing airlines to refund passengers for cancellations and other coinciding expenses, including hotel rooms, meals and transportation. 

Department of Transportation (DOT) officials said Friday the plan was axed because it ‍would cause "unnecessary regulatory burdens," according to a report from Reuters.

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DOT in December proposed airlines pay ‌$200 to $300 for domestic delays surpassing three hours and up to $775 for longer delays, according to the report.

"Airline passengers in Canada, for example, and the European Union already get these compensations, and guess what? It works," Biden said in 2023. "One study found that the European Union requirement that compensates passengers for flight delays, the number of flight delays went down."

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The DOT under President Donald Trump announced in September it planned to withdraw ​the proposal.

More than a dozen Democratic senators last month penned a letter to the Trump administration requesting it keep the compensation plan in place.

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"This is a common-sense proposal: when an airline’s mistake imposes unanticipated costs on families, the airline should try to remedy the situation by providing accommodations to consumers and helping cover their costs," the letter states.