Trump Administration Ends Proposed Cash Compensation for Flight Delays and Cancellations

Background

During the previous administration, the Department of Transportation introduced a regulation that would have required airlines to provide passengers with cash payments of up to $775 when flights were significantly delayed or cancelled. The rule was intended to give travelers a stronger financial incentive for airlines to keep schedules on track.

The Proposed Rule

The policy stipulated that airlines must offer a cash reimbursement when a flight’s arrival time was delayed by more than two hours, or when a scheduled flight was cancelled without a comparable alternative. Passengers could choose the cash payment instead of a voucher or credit, and the amount would vary based on the length of the delay and the distance of the flight.

Administration’s Decision

In a recent move, the current administration has suspended the enforcement of the rule, effectively halting the requirement for airlines to issue the cash payouts. Officials said the decision was made after a review of the regulation’s impact on the airline industry and the broader travel market.

Industry Response

Airlines have largely welcomed the reversal, arguing that the mandatory cash payments would have added significant operational costs and could lead to higher ticket prices. Consumer‑advocacy groups, however, expressed disappointment, contending that the measure was a needed safeguard for travelers facing inconvenient and costly disruptions.

What It Means for Travelers

For now, passengers will continue to receive the traditional forms of compensation—such as vouchers, mileage credits, or rebooking assistance—rather than a direct cash payment. The debate over how best to protect airline customers is expected to continue, with legislators and consumer groups monitoring the situation closely.