The advocacy arm of the American travel sector, the US Travel Association, has slammed budget cuts to Brand USA as well as new fees for visitors after the US House of Representatives passed a major bill backing President Donald Trump’s plans to extend tax breaks and slash spending.
Dubbed the “big beautiful bill”, the tax and spending package now only requires the President’s signature to be enacted.
Of chief concern for the US travel industry is the cut in funding to America’s national tourism marketing body, Brand USA, which the bill slashes from US$100 million this fiscal year to just US$20 million.
That’s a major worry for a destination that’s become too pricey for many Australians – thanks to an increasingly unfavourable exchange rate – and even considered too challenging to visit, due largely to tougher border control measures.
The country also has several major global events coming up that it needs to leverage, including the 2026 FIFA World Cup and the 2028 Summer Olympic Games in Los Angeles.
With this in mind, US Travel Association President and CEO Geoff Freeman criticised the Brand USA budget cut and its potential implications on the US visitor economy.
“Failing to fully fund Brand USA is a missed opportunity – especially as the administration seeks to maximise a historic slate of global events on American soil,” he said.
Brand USA President and CEO Fred Dixon called the cuts “disappointing” but said the organisation remained steadfast in its vision.
“While we are disappointed with the reduction from $100 million to $20 million in federal matching funds in Congress’ budget reconciliation bill, Brand USA remains committed to our mission and looks forward to opportunities for funding restoration in the future,” he stated, while thanking the travel industry for its “unwavering support of Brand USA throughout this entire process”.
“In the meantime, we remain fully engaged and in deep dialogue with every level of the administration. We take confidence in the President’s request for Brand USA’s full funding in FY26 and look forward to Congress taking up those appropriations later this fall.
“The current reduction will require a significant recalibration of our resources and programming that is still to be determined. But we remain focused on growing legitimate international inbound travel and the vital boost it provides to the US economy, especially with major global events on the immediate horizon like America250 and the FIFA World Cup.”
ESTA doubled
Along with the Brand USA cuts, the US is set to increase the Electronic System for Travel Authorization (ESTA) fee for Visa Waiver Program travellers from US$21 to US$40. That’s a rise from around AU$32 to over AU$60 for Aussie travellers, most of whom require ESTA authorisation to visit the States.
The legislation also imposes a new $250 Visa Integrity Fee for visitor visas, which won’t apply to Australian tourists.
“Raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation’s largest exports: international travel spending,” Freeman stated.
“These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travellers are already concerned about the welcome experience and high prices.
“As Congress begins work on FY26 appropriations, it must fully fund Brand USA and ensure visitor fees are lowered, if not eliminated, wherever possible.”
The World Travel & Tourism Council (WTTC) recently stated that the US is on track to lose a staggering US$12.5 billion (nearly AU$19.4 billion) in international visitor spending this year.
The upsides
Despite the threat the bill poses to inbound travel, the US Travel boss said the bill still holds some significant wins for the travel sector.
“This legislation is a giant step in the right direction when it comes to improving America’s travel infrastructure and security,” he explained.
“Bold, necessary investments in air traffic control and Customs and Border Protection will make a meaningful difference in the traveller’s experience.”
But Freeman added that, “the smart investments in the travel process make foolish new fees on foreign visitors and reductions to Brand USA, America’s promotion arm, that much harder to swallow”.
“Making America the world’s most visited destination – and capitalising on the upcoming World Cup and Summer Olympics – requires smarter policy and legislative changes that we are already pursuing.”
According to US Travel, among the key wins in the bill are:
- A US$12.5 billion boost to upgrade air traffic control
- A US$6.1 billion to fund 5,000 new customs officers and bonuses to ease airport delays
- US$673 million to expand biometric screening to support Visa Waiver Program growth
- US$1.6 billion for border and event security ahead of the 2026 FIFA World Cup and 2028 LA Olympics, improving the US travel experience and national readiness
For more info on Brand USA, click here.
For more info on the US Travel Association, click here.
