Airlines must refund cash for delays and cancellations—no forced vouchers

What it does

This bill requires airlines and foreign carriers to issue full cash refunds (including taxes and fees) to passengers when flights are cancelled, significantly delayed (3+ hours domestic, 6+ hours international), or substantially changed—unless the passenger accepts a rebooking or voucher. Airlines must refund credit-card purchases within 7 business days and cash purchases within 20 days. Passengers cancelling their own tickets 48+ hours before departure also get full refunds within 30 days. The rule applies to carriers with over $1.5 billion in annual revenue and foreign carriers serving the U.S.

Why we flagged it

The bill's core mechanism is a direct consumer protection: it mandates cash refunds for airline service failures and passenger-initiated cancellations, eliminating the airline industry's historical practice of forcing vouchers or rebooking in lieu of refunds.

What the text implies

• Ticket agents become liable for refunds if they sold the ticket but lack passenger funds; the Secretary must issue regulations requiring carriers to transfer funds to agents—creating a new compliance and fund-transfer infrastructure.
• The $1.5 billion revenue threshold exempts smaller regional carriers from the refund mandate, potentially creating a two-tier system where budget or regional airlines face different obligations than major carriers.
• Vouchers remain legal if offered as an explicit alternative with clear notice and no expiration date; airlines may still use vouchers as a primary offer strategy, limiting the practical impact on carrier revenue if passengers accept them.
• The 48-hour passenger-cancellation refund right (subsection b) is broader than the carrier-cancellation right and applies to all 'covered carriers' (those over $1.5B revenue), potentially increasing refund volume for voluntary cancellations.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Passengers gain enforceable rights to cash refunds for airline disruptions, eliminating forced acceptance of vouchers or rebooking, and receive faster payment (7–20 days). Airlines retain the option to offer vouchers as an alternative, but passengers can reject them—shifting power from carriers to consumers.

Who stands to gain

• passengers (refund rights and faster payment timelines)
• ticket agents (potential liability shift and fund-transfer requirements may increase operational cos

Named in the bill

air carriers, foreign air carriers, ticket agents, Secretary of Transportation, Bureau of Transportation Statistics, 49 U.S.C. § 42305, 49 U.S.C. § 40102, 49 U.S.C. § 46301

Where it stands

• Sep 21, 2026 — Introduced · Congress.gov: “Introduced in House”
• Sep 21, 2026 — Referred to House Committee on Transportation and Infrastructure · Congress.gov: “Referred to the House Committee on Transportation and Infrastructure”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.