The idea of getting cash in your pocket for a long flight delay in the U.S. is officially dead. The Department of Transportation announced Thursday that it is scrapping a Biden-era plan that would have forced airlines to pay passengers for delays within the airline’s control – think maintenance delays and staffing issues.

According to a report from Reuters, the DOT under President Donald Trump has formally dropped the proposal, which would have required airlines to pay between $200 and $300 for domestic delays of three hours or more, and up to $775 for longer international disruptions. Airlines lobbied fiercely against the plan, saying it would raise ticket prices. The Trump administration said pulling the proposal was “consistent with department and administration priorities,” according to the DOT’s official notice.

Airlines for America, the trade group representing Delta, United, American, and others, praised the decision. Consumer advocates, meanwhile, said the rule would have compensated passengers for their troubles and pushed airlines to operate more reliably in the first place.

 

What Travelers Get in the U.S. Today

Here in the U.S., travelers have shockingly few rights. For years, U.S. regulators have left it largely up to the airlines themselves to decide how to handle delays and cancellations. Current rules only require airlines to refund passengers when flights are canceled outright – not when they’re significantly delayed. Anything more, like hotel or meal vouchers, is voluntary.

After a wave of holiday meltdowns in 2022, the major airlines pledged to do more, promising to cover meals, hotels, and other expenses when disruptions were their fault. But those commitments are not legally binding, and the level of coverage still varies from airline to airline. 

Last year, a new federal refund rule set clear standards around refund requirements across all airlines for what's considered a significant delay while ensuring travelers get their money back faster: 

  • Passengers are entitled to a refund if an airline changes your domestic flight by three hours or more
  • For international flights, schedule changes of more than six hours would trigger a mandatory refund
  • Adding a connection to a nonstop flight (or additional connections) is now considered a significant delay
  • Shifting your flight to arrive in or depart from a different airport would trigger a refund
  • Downgrading cabins or class of service would trigger the option of a refund, too
  • A plane swap that results in a flight on a different plane that is “ less accessible or accommodating to a person with a disability” would also be eligible for a full refund

Airlines are also required to process refunds more quickly, cutting down the waiting game that once left passengers begging for their money back.

That’s progress – but it’s not the same as compensation for significant delays. With the Trump administration scrapping this plan, you won’t be paid for your time or the inconvenience of sitting in an airport for hours on end when a delay is the airline's fault. 

 

How It Differs Around the World

Compare that to Europe, where travelers have had stronger protections for nearly two decades thanks to a regulation known as EU261. If you're traveling to, from, or within Europe, you can receive up to 600 euros ($635) when long delays or cancellations are within an airline’s control. Shorter flights qualify for smaller payouts: €250 ($265) or €400 ($425), depending on the distance.

These protections also guarantee meals, hotel accommodations, and even transport to and from the airport when disruptions stretch overnight. These rules apply regardless of whether you’re flying a European airline or a U.S. carrier departing from Europe.

Other countries, like Canada, Brazil, and the U.K. offer similar levels of protection and it makes a major difference. In much of the world, airlines have a clear financial incentive to run reliable operations. In the U.S., they largely don’t.

 

Why It Matters

Consumer advocates argue that rules like EU261 not only help travelers, but also change airline behavior. If carriers know they’ll be on the hook for thousands of dollars in compensation every time they delay a flight, they’ll work harder to prevent those disruptions in the first place.

Former Biden administration economic adviser Bharat Ramamurti said the proposal “would have resulted in far fewer delayed and canceled flights in the first place.” Instead, the U.S. is sticking with the status quo: refunds for cancellations, and voluntary perks when delays get ugly.

That makes this latest decision a setback for U.S. travelers, especially after years of record-breaking delays and cancellations coming out of the COVID-19 pandemic. 

 

How to Protect Yourself Anyway

Since the U.S. doesn’t require airlines to compensate you for long delays, your best bet is to protect yourself by booking flights with a travel rewards credit card that offers trip delay coverage.

As long as you book your flight with cards like the *chase sapphire preferred* or the *capital one venture x*, you'll be reimbursed for your meals, hotels, and other expenses if your flight is delayed more than 6 to 12 hours. It’s not automatic cash like EU261, but it can save you hundreds when you’re stranded.

If you don't have a credit card with built-in travel protections, purchasing travel insurance could make sense. Many standalone policies include trip delay or cancellation benefits that fill in the gaps that U.S. airlines don’t cover.

Neither option replaces the simplicity of automatic cash payouts like in Europe. But for now, they’re your best options.

Read More: Our Experience With Chase's Trip Delay Insurance

 

Bottom Line

The Biden administration wanted airlines to pay you up to $775 when long delays were their fault. The Trump administration just killed that plan, according to an official DOT notice. 

For now, U.S. travelers are stuck with refunds – not compensation – while flyers in Europe, Canada, and the U.K. enjoy stronger protections. Until that changes, the best way to protect yourself is to carry a card with trip delay coverage, consider travel insurance, and hope your next flight runs on time.