The Trump administration is reportedly considering a $500 million rescue deal for Spirit Airlines, which could result in the federal government owning up to 90% of the company after it emerges from bankruptcy. This could preserve the low-cost option for travelers but could create a problematic chain reaction for other struggling companies seeking financial relief. Policy analyst at the Cato Institute, Tad DeHaven, highlighted a growing list of government-backed equity deals across a range of industries that indicate a broader expansion of federal involvement in private and public companies. The move could fundamentally reshape competition across the airline industry, particularly for carriers that have survived without government support. The White House is monitoring the situation and the overall health of the U.S. aviation industry.