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

Multiple independent and reliable sources confirm that the Trump administration has reversed a Biden administration proposal to mandate cash compensation for passengers affected by flight cancellations or significant delays caused by airlines. The original Biden-era rule, announced in April 2024, aimed to provide compensation starting at $200 for domestic flights and up to $775 for international flights under certain disruption conditions.

This rule was popular among consumers but faced strong opposition from airlines and their trade groups. The Trump administration's decision to drop this rule was reported on September 4, 2025, by several major news outlets, indicating a clear policy reversal. The sources consistently describe the cancellation as a setback for consumer protections in air travel and note that the airlines had opposed the compensation mandate.

There is no credible contradictory evidence disputing this cancellation, and all sources agree on the timeline and nature of the policy change.