WASHINGTON – Senator Ruben Gallego (D-AZ) backed the Flight Delay and Cancellation Compensation Act, legislation introduced today that will protect passengers by requiring airlines to provide cash compensation and free rebooking for passengers facing significant delays or cancellations caused by the airline. The bill would also direct the Department of Transportation (DOT) to mandate airlines reimburse passengers for hotels, meals, and transportation to lodging as a result of flight disruptions, regardless of the cause of the delay.

The bill comes after the Trump administration cancelled a popular consumer protection rule that would have required airlines to compensate passengers for preventable travel cancellations or delays.

“Right before millions of Americans began traveling for the holidays this year, Trump’s transportation department ripped up the rule that forced airlines to compensate passengers when flights are delayed or cancelled. The Trump administration is once again siding with airline CEOs instead of everyday working families. I’m proud to back this legislation so families aren’t left stranded with the bill when airlines screw up,” said Senator Gallego.  

Under the Flight Delay and Cancellation Compensation Act, the DOT would be required to issue regulations that:  

  • Require the DOT to establish an Aviation Rulemaking Committee (ARC) that includes consumer protection groups to develop recommendations for how to implement rules that would require air carriers to provide consumers experiencing significant flight disruptions cash compensation, free rebooking, and reimbursements for passenger care needs such as meals, lodging for overnight delays, and transportation to and from lodging;  
  • Require the ARC to develop recommendations for passenger compensation in alignment with foreign standards, including the Canadian Transportation Agency (CTA) Air Passenger Protection Regulations and Regulation (EC) No 261/2004 of the European Parliament and of the Council;   
  • Set a baseline standard of compensation of at least $300 for a delay of more than 3 hours but less than 6 hours; and at least $600 for a delay of 6 hours or more;  
  • Direct DOT to undertake a rulemaking to implement the ARC recommendations within 90 days after the ARC report is submitted; and  
  • Establish a stricter interim final rule that will go into effect 18 months after the bill is enacted, to prevent DOT from dragging its feet and ensuring the rulemaking takes place.  

On November 15, 2025, the Trump administration officially withdrew a planned Advanced Notice of Proposed Rulemaking (ANPRM) that the previous Administration’s Department of Transportation had initiated in December 2024 to require airlines to compensate passengers and cover their expenses for lengthy delays or cancellations caused by carriers.    

The ANPRM is the first part of the federal rulemaking process, meant to solicit public comment on the policies proposed by the agency. This ANPRM sought public comment on a rulemaking to “ensure consumers experiencing significant flight disruptions are taken care of and protected from financial losses.”    

The Flight Delay and Cancellation Compensation Act builds on the FAA Reauthorization Act of 2024 language and the proposed Biden-era ANPRM to expand consumer protections for impacted air passengers. This bill requires that the rulemaking process be restarted and that the FAA Reauthorization Language be implemented by establishing an Aviation Rulemaking Committee to develop recommendations to implement the requirements of the FAA Reauthorization Act and expand those recommendations to include reimbursement in the form of cash compensation and free rebooking. If the DOT fails to do so, the bill establishes an interim final rule with the force of law that establishes various minimum standards as outlined above. 

“Delays and cancellations are far and away the Number 1 complaint of airline passengers. Most are due to causes within airline control such as lack of airworthy equipment, flight personnel or not enough paying passengers, not weather or air traffic control. FlyersRights, the largest airline passenger organization, believes delay compensation is essential to improve air travel reliability and endorses the subject legislation. Delay compensation is the norm outside the US. Recent studies show major increases in lengthy delays is accelerating,” said FlyersRights President Paul Hudson.  

“At a time when this DOT appears to be abandoning the public, it’s critical for Congress to step up,” said National Consumers League Senior Public Policy Manager Eden Iscil. “This bill would bring consumer protections for flying into the 21st Century and in line with those found in many international jurisdictions. There’s no reason an American airline should provide better care for its passengers when departing from Frankfurt while still denying those same basic accommodations for flights out of Phoenix.”

Read the full bill HERE.

Read a one-pager of the bill HERE.

12/4/25