The administration of U.S. President Donald Trump announced on Thursday that it will withdraw the plan that required airlines to pay cash compensation to passengers for disruptions in U.S. flights caused by airline errors.

Last December, the U.S. Department of Transportation under former President Joe Biden sought public comment on drafting rules about whether airlines should be required to pay $200-$300 for domestic delays over three hours, and up to $775 for long delays. The proposal was strongly criticized by U.S. airlines.

The White House said in a document published Thursday that the Department of Transportation intends to withdraw the notice in line with the department’s and administration’s priorities.

The department also revealed it is considering repealing regulations issued in April 2024 that required airlines and ticket agents to disclose service fees alongside ticket prices to help consumers avoid unexpected or unnecessary fees. This requirement was suspended by court order due to a legal challenge from the industry.

The department also plans to reduce regulatory burdens on airlines and ticket agents by drafting new rules clarifying the definition of flight cancellation that allows consumers to get ticket refunds, as well as reviewing rules related to ticket pricing and advertising.

Airlines for America, a trade group representing companies such as American Airlines, Delta, United Airlines, and others, praised these measures, noting that Biden’s cash compensation plan would have led to higher ticket prices.

The group said, “We are encouraged by the Department of Transportation’s review of unnecessary and burdensome regulations that exceed its authority and do not address important issues for our customers.”

Currently, U.S. airlines must refund ticket prices when flights are canceled, but they are not required to compensate passengers for delays.

Major airlines pledged in 2022 to cover costs for meals, lodging, hotels, and other expenses when they cause significant flight disruptions.

Compared to international rules, there are regulations for compensating flight delays in Canada, Brazil, the European Union, and the United Kingdom.

In December, the Department of Transportation said it was considering whether airlines should cover costs for meals, lodging, and other expenses after airline disruptions, and whether passengers should be rebooked on the next available flights or use competitor flights if none are available within 24 hours.