The advocacy group founded by former Vice President Mike Pence has publicly opposed the Trump administration's reported plan to rescue Spirit Airlines, adding a significant conservative voice to the growing backlash. In a memo obtained by The Hill on Thursday, Advancing American Freedom (AAF) argued that a government bailout of the budget carrier would directly contradict core conservative principles opposing state ownership of private companies.
AAF questioned why American taxpayers should be forced to prop up a company it described as “uniquely unprepared,” drawing a parallel to the Troubled Asset Relief Program (TARP), the 2008 law signed by President George W. Bush that purchased toxic assets from financial institutions during the subprime mortgage crisis. “American families shouldn’t be forced to bail out Spirit and the shareholders or pay the bill to see if the federal government can run an airline,” the group wrote. “Conservatives must oppose this bailout.”
The Wall Street Journal reported Wednesday that the Trump administration is actively negotiating a rescue deal for Spirit Airlines. According to the Journal, President Trump met with Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick on Tuesday to craft a plan to prevent the airline from liquidating. People familiar with the discussions told Bloomberg that the talks produced a potential $500 million financing option for Spirit, with the government receiving warrants to purchase up to 90 percent of the new entity. Duffy was reportedly opposed to the deal.
Senators Ted Cruz (R-Texas) and Tom Cotton (R-Ark.), both prominent GOP allies of the administration, have also come out publicly against the bailout. Cruz called it an “absolutely TERRIBLE idea” on social media platform X, adding that “the TARP corporate bailouts were a huge mistake & the government doesn’t know a damn thing about running a failed budget airline (that the Biden admin killed).” For more on Cruz's opposition, read our separate coverage: Cruz Blasts Trump's Spirit Airlines Bailout as 'Terrible Idea'.
When asked about the reporting on Wednesday, White House press secretary Karoline Leavitt blamed the Biden administration for Spirit’s financial troubles. She noted that former President Biden and his Transportation Secretary Pete Buttigieg blocked a proposed merger between Spirit and JetBlue in 2023. “Well, I understand the airline is bankrupt because the previous administration blocked the merger, which was probably not a wise move,” Leavitt told reporters. “The aviation industry is very important to this president and this White House.”
The pushback from Pence’s group underscores the ideological rift within the conservative movement over government intervention in private markets. The proposed deal would give the federal government an ownership stake in Spirit, a move that many conservatives see as a dangerous precedent reminiscent of the 2008 bailouts. This debate comes amid broader political turbulence, including ongoing tensions over Iran policy and domestic spending priorities. For context on other administration moves, see our report: Trump Extends Iran Ceasefire Despite IRGC Attack, Signaling Strategic Retreat.
The AAF memo is the latest in a series of conservative critiques of the Trump administration’s economic interventions. As the White House pushes forward with negotiations, the opposition from within the GOP could complicate efforts to finalize the rescue. The full memo is available online.
