Senate Democrats Roll Out Bill to Require Cash Compensation for Airline Caused Delays

Senate Attempts to Reinstate Protections for Delayed Airline Passengers

WASHINGTON, Senate Democrats introduced a new airline passenger protection bill on December 4, 2025, aiming to require cash compensation, free rebooking, and basic care such as meals and hotel coverage when significant flight disruptions are caused by an airline.

The proposal, titled the Flight Delay and Cancellation Compensation Act, is led by Sens. Mark Kelly of Arizona, Richard Blumenthal of Connecticut, and Edward J. Markey of Massachusetts, with a broader list of Democratic cosponsors that includes Sens. Peter Welch, Cory Booker, and Ron Wyden.

Supporters framed the bill as a direct response to the Trump administration’s decision to withdraw a Biden era effort that would have moved the United States closer to the European Union and Canada, where cash compensation for lengthy delays is already a standard feature of passenger rights regimes.

What the bill would require

At the center of the legislation is a baseline compensation schedule that would apply when delays are attributable to the airline.

Under the bill, passengers would be entitled to at least:

• $300 for a delay of more than three hours but less than six hours
• $600 for a delay of six hours or more

In addition to cash compensation, the bill directs the Department of Transportation to mandate a set of passenger care requirements, including free rebooking and reimbursements for essentials when disruptions force travelers to spend money out of pocket.

Those care requirements would include meals, lodging for overnight delays, and transportation to and from lodging.

One major structural feature is that the bill does not simply declare the final rules and walk away. Instead, it would require DOT to convene an Aviation Rulemaking Committee that includes airline representatives, airport operators, and consumer protection groups, then produce recommendations on how compensation and related services should be implemented.

The backstop designed to prevent delay

Supporters of the bill argue that passenger protections are vulnerable when they rely on agency rulemaking alone, especially when administrations change. To address that, the bill includes a built in backstop.

The legislation would require DOT to begin rulemaking within a defined window, and it would establish a stricter interim final rule that would take effect 18 months after enactment to prevent the department from stalling the protections indefinitely.

Why it is being pushed now

The timing is not accidental. The bill was introduced as the holiday travel season ramps up, when flight disruptions become especially costly for passengers trying to salvage tight schedules and prepaid plans.

It also follows a series of recent federal moves and court decisions that Democrats say have left consumer protections uneven and too dependent on voluntary airline policies.

In late July 2024, a federal appeals court blocked DOT’s airline fee transparency rule pending review, a setback for the Biden administration’s broader push to standardize consumer disclosures and protections.

Then in 2025, DOT under the Trump administration formally moved away from the Biden era proposal that would have required cash compensation for some airline caused delays, a shift that bill sponsors say created a policy vacuum that only Congress can fill.

DOT recall guidance adds fuel to the debate

The bill’s rollout also comes as DOT issued new guidance this week stating that airlines do not have to cover passenger expenses such as meals or hotel stays when flight cancellations or lengthy delays are caused by aircraft recalls, even though airlines often make voluntary customer service commitments for disruptions deemed within their control.

That distinction, controllable versus not controllable, is central to the current U.S. system. Under existing rules, airlines must provide refunds when they cancel flights, but there is no across the board federal requirement that they pay for meals or hotels when disruptions are the airline’s fault.

Supporters of the bill say the recall guidance illustrates why voluntary commitments and shifting interpretations can leave travelers stranded with major out of pocket costs.

What sponsors are saying

In announcing the legislation, Markey argued that passengers often absorb the secondary costs of airline mistakes, including missed connections, extra nights of lodging, meals, and lost income.

Kelly described the bill as a straightforward accountability measure, saying airlines should not be able to push the financial consequences of preventable disruptions onto travelers.

Blumenthal has similarly framed the measure as a consumer first fix in a system where disruptions can wipe out a family’s budget in a single day.

Airline industry opposition remains a major hurdle

The bill is expected to face pushback from the airline industry, which has repeatedly argued that mandatory compensation regimes would raise costs and eventually show up in ticket prices.

Industry groups also contend that many delays stem from factors outside an airline’s direct control, including weather and air traffic control constraints, and they argue that airlines already have financial incentives to operate on time.

The legislation attempts to narrow some of that debate by focusing on disruptions that are directly attributable to the airline and by assigning the Aviation Rulemaking Committee a role in recommending how those determinations should be made.

What happens next

The Flight Delay and Cancellation Compensation Act has been introduced, but it has not advanced to a vote. If it were to become law, DOT would be required to launch a new rulemaking process, build specific standards through the committee process, and implement a compensation and care framework that backers say would finally align U.S. rules with other major aviation markets.