‘Terrible Idea’: Republicans Denounce Trump’s Proposed Bailout for Spirit Airlines

(SeaPRwire) –   Several Republican lawmakers have expressed concern over President Donald Trump’s interest in a multimillion-dollar bailout for Spirit Airlines.

Earlier this week, Trump stated he’d “love for someone to purchase Spirit” and put forward the idea that “maybe the federal government should assist that one.”

Since then, Reuters has reported that the Trump administration is close to a deal potentially involving up to $500 million in government-supported funding, citing three individuals with knowledge of the situation.

TIME has contacted the White House to request a comment.

Spirit filed for Chapter 11 bankruptcy for the second time last August and secured approval for an emergency $475 million financial lifeline in October.

In recent weeks, the company has faced further pressure, as it and other airlines have had to deal with a sharp increase in jet fuel prices during the energy crisis triggered by Tehran’s control over the Strait of Hormuz since the Iran war began on Feb. 28.

According to Argus Media, the average U.S. jet fuel price has surged from $2.50 per gallon prior to the conflict to approximately $4.23 per gallon.

As a result, numerous airlines have had to hike ticket prices and eliminate low-margin routes.

The White House has pointed the finger at the Biden administration for Spirit’s financial woes.

“The [Spirit] airline is bankrupt because the prior administration blocked the merger, which likely wasn’t a smart decision,” White House press secretary Karoline Leavitt stated Wednesday, referencing JetBlue’s failed $3.8 billion bid to acquire Spirit in 2024.

At the time, the Justice Department noted that the block shielded U.S. markets—and their participants—from “anticompetitive harm.”

However, Trump’s suggestion of a federal bailout as a possible solution for the private-sector airline has sparked serious concern among lawmakers, igniting a debate over government intervention in business.

Laying blame squarely on Trump’s war with Iran, Massachusetts Democratic Sen. Elizabeth Warren contended: “Donald Trump’s war with Iran led to the sky-high fuel prices that ultimately put Spirit Airlines out of business.”

Questioning the impact on the public, she added: “What do American taxpayers gain from this bailout? Will the airline’s failing executives be held responsible?”

Her concerns have been echoed by leading conservative voices.

Former Georgia Congresswoman Marjorie Taylor Greene—a Republican who was once an ally of Trump before their public rift—argued that such a move is “not what America voted for.”

“The Trump administration plans to bail out Spirit Airlines with $500 million of your tax money but won’t take any action to reduce health insurance costs, the cost of living, or gas and diesel prices,” Greene asserted—adding that she too blames the Iran war for rising expenses.

Multiple current Republican lawmakers shared similar worries.

Arkansas Sen. Tom Cotton

Sen. Cotton, a member of the Senate Joint Economic Committee, questioned whether the federal government could successfully operate Spirit Airlines if the bailout goes through.

“If Spirit’s creditors or other potential investors don’t believe they can run it profitably after its second bankruptcy in less than two years, I don’t think the U.S. government can either,” Cotton stated. “This isn’t the best use of taxpayer money.”

Texas Sen. Ted Cruz

Sen. Cruz criticized the possible bailout as an “absolutely terrible idea,” citing the TARP corporate bailouts as a “massive error.”

TARP—short for the Troubled Asset Relief Program—was created by the U.S. Treasury in 2008 in the wake of the financial crisis. The program offered bailouts to U.S. banks, the auto sector, and families nationwide to prevent foreclosure, along with the government buying up troubled companies’ assets and stocks.

In 2023, the Treasury reported that TARP disbursed a total of $443.5 billion, and after accounting for returns and interest, the program cost taxpayers $31.1 billion.

Expanding on his criticism, Cruz argued: “The government has no clue how to run a failing budget airline.”

Utah Sen. Mike Lee

Sen. Lee backed Cruz’s stance, noting that “airline competition suffers when the government bails out carriers.”

Lee recently teamed up with Democratic Sen. Warren to raise concerns about reports that United Airlines CEO Scott Kirby met with Trump earlier this year to discuss a possible merger with American Airlines.

“A merger between United and American Airlines would create the world’s largest airline in an industry already struggling with a lack of competition,” Lee and Warren wrote in a public letter.

One of their key concerns was the possible effect on consumers.

“First, a United-American merger could result in higher prices for consumers—at a time when airlines are already squeezing passengers with higher fares and fees,” they contended.

In a CNBC interview this week, Trump seemed to distance himself from the merger discussions when questioned about the issue.

“I don’t mind mergers,” he stated. “But American is doing fine, and United is doing very well. I know the folks at United—they’re doing great. I don’t want them to merge.”

North Carolina Sen. Ted Budd

Sen. Budd also opposed using taxpayer funds for this purpose.

“Taxpayers spend billions subsidizing Amtrak, even as Amtrak boasts growing demand and ridership,” he noted. “Just as Biden’s DOJ shouldn’t have blocked Spirit from merging with viable partners, Americans shouldn’t be stuck footing the bill for another failing business while its competitors prosper.”

Transport Secretary Sean Duffy

Even within the Trump administration, there are concerns—Transport Secretary Sean Duffy has pushed back against what he calls “foolish investments.”

“A lot of money has been poured into Spirit, and they still haven’t become profitable,” Duffy told Reuters. “So would we just delay the inevitable and then end up owning it?”

He asked: “If no one else wants to buy them, why should we?”