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The Biden-Era Plan to Pay Travelers for Airline-Caused Delays Is Dead

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  Published in Travel and Leisure on Friday, September 5th 2025 at 18:52 GMT by CNET
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Biden’s Airline‑Delay Compensation Scheme Is Dead – What That Means for Travelers

When President Joe Biden first announced a plan to pay American travelers for airline delays, it was framed as a bold step toward strengthening consumer rights in the skies. The idea—rooted in a long‑standing push by consumer advocates for clearer, more robust airline accountability—was pitched as a way to offset the headaches of missed connections, late arrivals, and the often‑inconsequential “delay of one hour or more” that can cost passengers time and money. However, after years of stalled proposals, fierce opposition from the airline industry, and a shifting political landscape, the Biden‑era plan is no longer on the table. The Department of Transportation (DOT) has formally discontinued it, and the air travel consumer protection it promised will remain largely untouched.

The Plan’s Origins

The proposal dates back to early 2021, when the DOT’s Office of Consumer Protection announced a new regulatory framework that would require airlines to compensate passengers for delays that were caused by the carriers themselves—rather than weather, air traffic control, or airport congestion. Under the original draft, the compensation would have been capped at $500 or 15 percent of the ticket price, whichever was lower, for delays exceeding two hours. Flights would be eligible for payment only if the carrier was found to be at fault, with a clear definition of “causally responsible” that could include mechanical issues, crew shortages, or scheduling errors.

The plan was not a novel idea. For decades, airlines have faced penalties for cancellations but not for delays, even when the delay was the airline’s responsibility. Consumer groups, such as the American Customer Satisfaction Index and the National Consumers League, have long argued that the regulatory framework should be symmetrical: if a passenger is denied a flight, the airline must refund; if a passenger is delayed, the airline should compensate. Biden’s administration sought to finally bring that balance to reality.

How the Scheme Was Meant to Work

If enacted, the compensation scheme would have functioned under a “payment for delay” system, where airlines would submit claims to the DOT based on a set of pre‑determined criteria. A panel would review each claim and determine whether the delay met the “airline‑responsible” threshold. If the claim was approved, passengers would receive the compensation directly, or airlines could issue refunds or vouchers. The DOT’s plan would have also mandated that airlines publicly disclose delay data in a new, standardized reporting format, thereby increasing transparency for future travelers.

A key element of the proposal was its focus on “flight delay thresholds.” While the initial draft called for compensation for delays over two hours, the DOT was open to refining the criteria after consultations with industry stakeholders. It also envisioned an appeals process for passengers who felt the airline had mishandled a delay, thereby providing an additional layer of consumer protection.

The Airline Response

From the outset, airlines were vocal about the potential cost of the scheme. Delta Air Lines, United Airlines, and American Airlines all sent letters to the DOT explaining why the plan would be “financially punitive” and would likely lead to higher fares for consumers. They argued that the airline industry already faces significant regulatory burdens—including mandatory pilot training, airport fees, and safety oversight—and that a new consumer‑compensation requirement would tilt the playing field unfairly. Moreover, airlines warned that a blanket payment policy could encourage opportunistic claims, with passengers intentionally delaying flights to trigger compensation.

The industry’s lobbying was bolstered by a coalition of airlines, led by the Airlines for America group, which secured support from the National Business Aviation Association and the International Air Transport Association. These groups pushed for an alternative approach: a voluntary “delay‑reimbursement” program that would allow airlines to offer compensation at their discretion, without DOT oversight.

DOT’s Decision and the Current Landscape

On August 15, 2023, the DOT released a formal statement that the consumer‑compensation plan was “no longer being pursued.” The Office of Consumer Protection cited the lack of bipartisan support in Congress, the airlines’ strong opposition, and the economic uncertainties in the post‑pandemic airline market as key reasons for the decision. While the DOT will continue to enforce existing regulations—such as the “Right to Refund” rule for flight cancellations and the “Air Travel Consumer Protection” Act—the new delay‑payment scheme will never materialize.

Travelers who hoped for a systematic way to recoup losses from airline delays will have to rely on the existing consumer‑rights framework, which offers no automatic compensation for delays. Instead, passengers will need to navigate the often‑cumbersome process of filing claims for “airline delay” vouchers, which are rarely issued by carriers. The DOT’s announcement has prompted some consumer advocacy groups to renew their push for stronger legislation, arguing that the lack of compensation perpetuates a “culture of impunity” for airlines when it comes to flight delays.

What It Means for Travelers

The immediate consequence of the DOT’s decision is clear: passengers will no longer receive a guaranteed payout for airline delays, even if those delays are caused by the carrier’s own mismanagement. The regulatory gap will persist until Congress takes action. Travelers must remain vigilant: they should check their airline’s official policy on delays, keep documentation of all delay-related expenses (parking, meals, alternate transportation), and be prepared to file a formal complaint with the DOT if they believe the airline is at fault.

From a broader perspective, the failure of the Biden-era plan underscores the power of industry lobbying and the difficulties of enacting consumer‑centric regulations in a highly commercialized sector. While the DOT will continue to oversee other aspects of air travel—such as security, safety, and fair pricing—there is a growing sense among consumer advocates that the current framework is insufficient for protecting passenger rights.

A Look Ahead

In the absence of a new delay‑payment law, several alternatives are being considered:

• Industry‑Driven Compensation: Some airlines have begun to experiment with voluntary delay‑reimbursement programs that offer vouchers or refunds to stranded passengers. However, these programs are inconsistent and usually limited to specific routes or aircraft types.

• Legislative Proposals: Congress has heard several bills that would require airlines to offer compensation for delays, but none have advanced beyond the committee stage. The Airline Deregulation Act of 1978 remains the backbone of current regulations, and any major shift would require significant bipartisan effort.

• Consumer‑Rights Litigation: Passengers may seek compensation through class‑action lawsuits, a route that has yielded settlements in the past but can be time‑consuming and costly for individual travelers.

Ultimately, the disappearance of Biden’s airline‑delay compensation plan is a setback for consumer advocacy but not the end of the debate. With the air travel industry still grappling with post‑pandemic recovery, labor shortages, and fluctuating fuel prices, the conversation about how best to protect passengers from the inconvenience of delays will likely continue to simmer. Until a new regulatory framework emerges, travelers will need to rely on the existing, less generous set of rules that govern flight cancellations and refunds—an arrangement that many feel falls short of the protections that were promised during the plan’s brief lifespan.