Flight Delay Compensation in the U.S.: What Happened to the Passenger Rights Rule?

In 2023, the Biden administration proposed a rule to require airlines to pay passengers cash compensation for major delays and cancellations caused by the airline. By September 2025, the Trump administration withdrew the rule before it could take effect. Today, U.S. airlines are not required to pay for delays—only to refund canceled flights and cover lost baggage within federal limits. This post explains what the rule would have guaranteed, why it was scrapped, and what rights travelers still have under current law.