U.S. Moves to Roll Back Airline Delay Compensation Rules

On Sept. 4, 2025, the U.S. Department of Transportation announced it will withdraw a Biden-era advance notice that proposed requiring airlines to pay at least $200 for domestic delays of three hours or more, a move that would remove planned rules mandating passenger compensation and free rebooking for non-weather disruptions.

Key Takeaways

  • The DOT posted a regulatory notice on Sept. 4, 2025, stating it will withdraw the Advance Notice of Proposed Rulemaking (ANPRM).
  • The ANPRM was filed in December 2024 under the Biden administration and proposed minimum $200 payments for domestic delays of three hours.
  • The original proposal targeted compensation and free rebooking for delays and cancellations caused by non-weather-related issues.
  • The withdrawal would roll back a planned consumer protection that would have applied to U.S. domestic flights.
  • The decision reflects a policy change under the Trump administration’s Department of Transportation.
  • Exact timelines for formal withdrawal and any replacement rulemaking were not specified in the notice.

Verified Facts

The Department of Transportation posted a regulatory document online on Sept. 4, 2025 indicating it intends to withdraw an ANPRM that had been published in December 2024. That ANPRM proposed that airlines pay passengers at least $200 for domestic delays lasting three hours or more.

The proposal addressed delays and cancellations not caused by weather, and it also included provisions to require free rebooking for affected passengers. The DOT notice signals that those potential requirements will not proceed as public rules under the current plan.

The action to withdraw was announced by the agency and described in the posted regulatory filing; the department did not publish a firm timetable for completing the withdrawal or for any alternative rulemaking in the same notice.

Context & Impact

Consumer advocates had promoted the December 2024 ANPRM as a way to give passengers clearer financial remedies when airlines caused long domestic delays. The withdrawal reduces the likelihood that a federal rule will soon require standardized cash payments for long delays.

Airlines generally opposed mandatory payments, arguing that operational disruption is complex and that costs should not automatically be assigned in all cases. Removing the ANPRM relieves carriers from a pending federal requirement but does not prevent airlines from offering voluntary compensation policies.

Politically, the move illustrates a shift in transport policy between the Biden and Trump administrations. Regulatory priorities often change with new administrations, and this is an example where a proposed consumer protection will be stepped back.

Official Statements

The Department of Transportation posted that it plans to withdraw the December 2024 advance notice and related proposed requirements for passenger payments and rebooking.

U.S. Department of Transportation

Unconfirmed

  • Exact date when the DOT will complete formal withdrawal of the ANPRM is not specified in the posted document.
  • Whether the department will propose an alternative, narrower rule or reopen a different rulemaking in the near term is not stated.
  • Potential legal or congressional responses to the withdrawal, including any challenges or new legislation, remain uncertain.

Bottom Line

The DOT’s Sept. 4, 2025 notice to withdraw the Biden-era ANPRM removes a clear pathway to federal rules that would have required airlines to pay set amounts for long domestic delays and to provide free rebooking for non-weather disruptions. Passengers, consumer groups and airlines will watch for formal paperwork and any new proposals; absent further rulemaking, mandated payments and rebooking protections are unlikely to be enacted immediately.

Sources

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