Senator Ted Cruz has publicly slammed the idea of a potential government bailout for Spirit Airlines, marking a significant point of tension regarding the administration’s economic strategy. The Texas Republican took to X to express his strong disapproval of the proposed deal. He stated, “This is an absolutely TERRIBLE idea.”
The proposal, which has been discussed by President Trump along with Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick, reportedly includes a provision where the federal government could end up owning as much as 90 percent of the airline. Spirit Airlines has faced severe financial instability, having filed for bankruptcy twice in just the past two years. The discussions regarding this bailout come as the company continues to struggle with profitability and rising operational costs.
Senator Cruz, who serves as the chair of the Senate Commerce, Science and Transportation Committee, did not hold back in his criticism. He drew a direct comparison to the Troubled Asset Relief Program, which was implemented during the 2008 financial crisis to assist failing financial institutions. Cruz labeled such efforts as “corporate bailouts” and called them a “huge mistake.”
Ted Cruz’s reaction follows reports that the administration is exploring a rescue plan that could involve up to $500 million in government-backed financing for the struggling carrier
He further argued that the federal government lacks the expertise required to manage a budget airline. He also noted that the company’s current situation was exacerbated by a federal judge in 2024 who blocked a planned merger between Spirit and JetBlue. Regarding the government’s ability to manage such a business, Cruz remarked that the federal government “doesn’t know a damn thing about running a failed budget airlines (that the Biden admin killed,”.
The administration’s internal perspective appears divided on the merits of this rescue. Transportation Secretary Sean Duffy has voiced significant concerns about the potential investment. During an interview with Reuters, Duffy questioned the logic of committing public funds to a company that has consistently failed to turn a profit.
He stated, “What we don’t want to do is put good money after bad, and there’s been a lot of money thrown at Spirit, and they haven’t found their way into profitability. And so would we just forestall the inevitable and then own that?” He continued his critique by asking, “If no one else wants to buy them, why would we buy them?” and emphasized that the administration must avoid making what he termed “dumb investments.”
Despite these concerns, President Trump expressed a desire for a private buyer to step in, but noted the importance of the airline’s workforce. He said, “It’s 14,000 jobs. Maybe the federal government should help that one out. I told my people.” This comes after Trump recently discouraged a potential merger involving larger carriers like United and American Airlines, instead suggesting that Spirit should be acquired by another entity.
Opposition to the bailout is not limited to Senator Cruz. Senator Tom Cotton of Arkansas also utilized X to voice his disagreement with the potential plan. He argued that if private investors and creditors are unwilling to support the airline following its second bankruptcy in under two years, it is unlikely that the federal government will be successful in managing it. He concluded that this is “Not the best use of taxpayer dollars.”
On the other side of the aisle, Senator Elizabeth Warren weighed in on X as well. She pointed to geopolitical factors, specifically the conflict with Iran, as a cause for the high fuel prices that impacted the airline’s bottom line. She raised questions about the accountability of the airline’s executives and asked what benefits the American public would receive in exchange for a taxpayer-funded rescue.
Published: Apr 23, 2026 06:30 pm