Trump Is Helping Airlines Reduce Payouts for Flight Mishaps
The Trump administration has just paused an initiative aimed at increasing compensation for airline passengers when carriers lose their luggage or overbook flights.

The luggage of Southwest Airlines passengers waits to be claimed in the baggage claim area at Chicago Midway International Airport in Chicago, Illinois, on December 28, 2022. (Kamil Krazackynski / AFP via Getty Images)
The Trump administration just paused an initiative to get airline passengers higher compensation when carriers lose their luggage or overbook them for a flight.
In a regulatory filing submitted today, administration officials announced they would delay enforcement of the Joe Biden–era rule protecting passengers, named “Denied Boarding Compensation and Domestic Baggage Liability Limits,” until March. Though the delay is just for a month, the announcement directly cites the president’s (likely illegal) unilateral funding freeze — and notes Trump officials are now reviewing whether the rule will ever be implemented.
The Department of Transportation under Pete Buttigieg finalized the now-paused rule back in October 2024, increasing the compensation that victims of overbooking or luggage damage are legally entitled to. Under the new rule, passengers would get up to $600 more for overbooking-related cancellations and up to $900 more for mishandled luggage.