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Mindy PoderEditor-in-Chief

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Trump’s Spending Bill: Here’s What U.S. Travel Called ‘Foolish’ — and What ASTA Says it Got Right

Jul 07, 2025
Government & Politics  Travel News  USA  
ustravelbudgetbill
Congress just passed a sweeping bill that will reduce Brand USA's budget and impose high fees on tourists.
Credit: 2025 Igor/stock.adobe.com

Travel industry organizations are reacting to President Trump’s budget reconciliation bill, (aka the One Big Beautiful Bill Act), which was passed by Congress and signed by President Trump last week.

Geoff Freeman, president and CEO of The U.S. Travel Association, applauded the legislation as a positive step toward improving America’s travel infrastructure and security, but called new tourist fees and cuts to Brand USA’s funding “foolish.”

Editor's Note: This story was originally published on Wednesday, July 2. It has been updated.

Among the wins highlighted by U.S. Travel Association was a $12.5 billion payment to modernize the National Airspace System (NAS), which supports updates to air traffic control technology, physical infrastructure and workforce development. The bill also allotted $4.1 billion to hire and train at least 5,000 new U.S. Customs and Border Protection (CBP) officers, which will help reduce wait times at airports. Two billion dollars is going to CBP retention bonuses to address ongoing staffing shortages.

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Nearly $700 million will be dedicated to biometric technology investments to strengthen border security and unlock future Visa Waiver Program (VWP) expansion.

And major events being held in the U.S. will receive Homeland Security funding to prepare — to the tune of $625 million for the 2026 FIFA World Cup and $1 billion for the 2028 LA Olympic and Paralympic Games.

The American Society of Travel Advisors (ASTA) also applauded the bill for provisions that will impact travel advisors. The bill makes permanent Section 199A, which allows many small businesses, including nearly half of independent travel advisors, to deduct 20% of their qualified business income.

ASTA also supported the bill’s inclusion of postsecondary training and credentialing as qualified expenses under 529 savings plans, which are tax-advantaged accounts typically used for college savings.

Criticisms of the Bill

However, the bill notably slashed the budget of Brand USA, the country’s destination marketing organization, from $100 million to just $20 million, a move U.S. Travel's Freeman says must be reversed.

These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices.

"Failing to fully fund Brand USA is a missed opportunity — especially as the administration seeks to maximize a historic slate of global events on American soil,” he said.

According to U.S. Travel, President Trump’s FY26 budget requests full funding for Brand USA, and Freeman called on Congress to meet that request.

Brand USA will "remain fully engaged and in deep dialogue with every level of the administration," said Fred Dixon, CEO and president of Brand USA, in a release.

"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," he said. 

Another aspect of the bill criticized by U.S. Travel is the large increases to non-immigrant visa fees, including a new $250 Visa Integrity Fee for visitor visas and a $40 Electronic System for Travel Authorization (ESTA) fee for Visa Waiver Program travelers (which is currently $21 and mostly funds Brand USA).

"Raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation’s largest exports: international travel spending,” Freeman said. “These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travelers 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.”  

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