Story perspectives

Trump admin eyes $500 M Spirit loan, up to 90% ownership.

4/29/2026

Summary

Trump Rescues Spirit

President Donald Trump’s administration is negotiating a $500 million rescue loan for Spirit Airlines, and two of three creditor groups—including holders of a $275 million credit facility—have approved the deal.
A Citadel-led hedge-fund lender group opposes the terms and has sent an unanswered counterproposal.
If all creditor groups agree, a New York federal bankruptcy court could hold a Thursday hearing on a loan that may give the U.S. government up to 90% ownership.

Summary

Senators Reject

Senate Majority Leader John Thune told Semafor the government should not own airlines.
Senate Commerce Chair Ted Cruz called the Spirit plan a terrible idea and said the government lacks expertise to run a budget carrier.
About a dozen GOP lawmakers, from moderates to conservatives, voiced opposition within a week of President Donald Trump’s remarks.
Senator Josh Hawley said the proposal is not his favorite, citing Spirit’s poor customer service.

Summary

Lucas Warns Bailouts

Deborah Lucas, MIT Sloan distinguished professor, warns bailouts set a precedent future administrations may misuse.
Tad DeHaven of the Cato Institute says the Trump administration’s second term ignores congressional input on bailouts.
Marc Scribner of the Reason Foundation argues Spirit’s losses belong to shareholders and lenders, not taxpayers.
Marc Scribner proposes congestion pricing to replace the FAA’s slot system and points to the EU’s 1990s airline liberalization as a model.

History

Historical Context

Following the September 11, 2001 attacks, Congress enacted the Air Transportation Safety and System Stabilization Act on September 22, 2001, creating the Air Transportation Stabilization Board and authorizing up to $10 billion in loan guarantees for airlines like United and Delta. In 2024 the Trump administration sought a $500 million loan for Spirit Airlines, a move denounced by Senators John Thune and Ted Cruz, echoing the 2001 bailout precedent.

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Trump Rescues Spirit

President Donald Trump’s administration is negotiating a $500 million rescue loan for Spirit Airlines, and two of three creditor groups—including holders of a $275 million credit facility—have approved the deal.
A Citadel-led hedge-fund lender group opposes the terms and has sent an unanswered counterproposal.
If all creditor groups agree, a New York federal bankruptcy court could hold a Thursday hearing on a loan that may give the U.S. government up to 90% ownership.

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