HouseH.R. 10517119th Congress

Fair Fees Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10517 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                               H. R. 10517

To amend title 49, United States Code, to provide refunds for cancelled 
  or significantly delayed or changed flights, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2026

  Mr. Cohen introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL

 
To amend title 49, United States Code, to provide refunds for cancelled 
  or significantly delayed or changed flights, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Fees Act''.

SEC. 2. REFUNDS FOR CANCELLED OR SIGNIFICANTLY DELAYED OR CHANGED 
              FLIGHTS.

    (a) In General.--Section 42305 of title 49, United States Code, is 
amended to read as follows:
``Sec. 42305. Cash refunds for cancelled or significantly delayed or 
              changed flights
    ``(a) Significant Flight Delays, Changes, or Cancellations by the 
Carrier.--
            ``(1) In general.--In the case of a passenger who holds a 
        ticket on a scheduled flight to, from, or within the United 
        States, an air carrier or a foreign air carrier shall, upon 
        request as set forth in paragraph (3), provide a full cash 
        refund, including any taxes and ancillary fees, for the fare 
        such carrier collected for any flight cancelled by the carrier 
        or any significantly delayed or changed flight where the 
        passenger chooses not to--
                    ``(A) fly on the significantly delayed or changed 
                flight or accept rebooking on an alternative flight; or
                    ``(B) accept any voucher, credit, or other form of 
                compensation offered by the air carrier or foreign air 
                carrier pursuant to subsection (c).
            ``(2) Timing of refund.--Any refund required under 
        paragraph (1) shall be issued by the air carrier or foreign air 
        carrier--
                    ``(A) in the case of a ticket purchased with a 
                credit card, not later than 7 business days after the 
                earliest date the refund was requested as set forth in 
                paragraph (3); or
                    ``(B) in the case of a ticket purchased with cash 
                or another form of payment, not later than 20 days 
                after the earliest date the refund was requested as set 
                forth in paragraph (3).
            ``(3) Request of refund.--An air carrier and a foreign air 
        carrier shall consider a passenger to have requested a refund 
        if--
                    ``(A) a flight is cancelled and a passenger is not 
                offered an alternative flight or any voucher, credit, 
                or other form of compensation by the air carrier or 
                foreign air carrier pursuant to subsection (c);
                    ``(B) a passenger rejects the significantly delayed 
                or changed flight, rebooking on an alternative flight, 
                or any voucher, credit, or other form of compensation 
                offered by the air carrier or foreign air carrier 
                pursuant to subsection (c); or
                    ``(C) a passenger does not respond to an offer of--
                            ``(i) a significantly delayed or changed 
                        flight or an alternative flight and the flight 
                        departs without the passenger; or
                            ``(ii) a voucher, credit, or other form of 
                        compensation by the date on which the cancelled 
                        flight was scheduled to depart or the date that 
                        the significantly delayed or changed flight 
                        departs.
            ``(4) Application to ticket agents.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this section, the Secretary shall 
                issue a final rule to apply the requirements specified 
                in paragraphs (1), (2), (3), and (5) and subsection (c) 
                to ticket agents.
                    ``(B) Transfer of funds.--The Secretary shall issue 
                regulations requiring air carriers and foreign air 
                carriers to promptly transfer funds to a ticket agent 
                if--
                            ``(i) the Secretary has determined that the 
                        ticket agent is responsible for providing the 
                        refund; and
                            ``(ii) the ticket agent does not possess 
                        the funds of the passenger.
            ``(5) Refund notification.--Each air carrier, foreign air 
        carrier, or ticket agent shall update their passenger 
        notification systems to ensure passengers owed a refund under 
        this subsection are notified of their right to receive a 
        refund.
    ``(b) Passenger Flight Cancellation.--
            ``(1) In general.--In the event that a passenger cancels a 
        ticket for a flight not later than 48 hours prior to the 
        scheduled departure of the flight, the covered carrier or 
        ticket agent who sold such ticket to such passenger shall--
                    ``(A) offer to the passenger a full cash refund for 
                such ticket, including any taxes and ancillary fees 
                paid; and
                    ``(B) provide such refund not later than 30 days 
                after the date on which the passenger makes such 
                cancellation.
            ``(2) Required disclosure.--Prior to the sale of a ticket 
        for a flight to a passenger, a covered carrier or ticket agent 
        shall disclose to the passenger, in writing, that the passenger 
        has a right to cancel their ticket in accordance with paragraph 
        (1) and receive a full cash refund.
    ``(c) Alternative to Refund.--An air carrier or a foreign air 
carrier described in subsection (a) or a covered carrier or ticket 
agent described in subsection (b) may offer a voucher, credit, or other 
form of compensation as an explicit alternative to providing a refund 
required by subsection (a) or (b), but only if--
            ``(1) the offer includes a clear and conspicuous notice 
        of--
                    ``(A) the terms of the offer; and
                    ``(B) the passenger's right to reject the offer and 
                elect to receive a full cash refund in accordance with 
                the requirements of this section; and
            ``(2) the voucher, credit, or other form of compensation 
        offered as an alternative to providing a full cash refund is 
        redeemable by the passenger at any time and without any 
        expiration or use by date.
    ``(d) Definitions.--In this section:
            ``(1) Air carrier, foreign air carrier, ticket agent, and 
        united states.--The terms `air carrier', `foreign air carrier', 
        `ticket agent', and `United States' have the meanings given 
        those terms in section 40102.
            ``(2) Covered carrier.--
                    ``(A) In general.--The term `covered carrier' 
                means--
                            ``(i) any passenger air carrier that had an 
                        operating revenue in the previous year that 
                        exceeded $1,500,000,000 according to the Bureau 
                        of Transportation Statistics; or
                            ``(ii) any passenger foreign air carrier 
                        operating a flight to or from the United 
                        States.
                    ``(B) Inflation adjustment beginning in 2028.--For 
                purposes of applying this paragraph in a year 
                (beginning in 2028), the dollar amount specified in 
                subparagraph (A)(i) shall be increased by the 
                percentage increase (if any) in the consumer price 
                index for all urban consumers (U.S. city average) over 
                the previous year.
            ``(3) Significantly delayed or changed flight defined.--The 
        term `significantly delayed or changed flight' includes, at a 
        minimum, a flight where the passenger arrives at a destination 
        airport--
                    ``(A) in the case of a domestic flight, 3 or more 
                hours after the original scheduled arrival time; and
                    ``(B) in the case of an international flight, 6 or 
                more hours after the original scheduled arrival time.
    ``(e) Penalties.--Each violation by an air carrier, foreign air 
carrier, covered carrier, or ticket agent of the requirements 
applicable to such carrier or ticket agent under this section shall be 
subject to a civil penalty under section 46301(a).''.
    (b) Clerical Amendment.--The analysis for chapter 423 of title 49, 
United States Code, is amended to read as follows:

``Sec. 42305. Cash refunds for cancelled or significantly delayed or 
                            changed flights.''.
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