By Michael Baginski/ Donald Trump’s “big, beautiful bill” is now law, which is bad news for Brand USA. At nearly 900 pages, the budget reconciliation legislation – signed by the president with the backdrop of fireworks on July 4 – is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations. But buried in the document is the slashing of funding for the marketing organization responsible for promoting U.S. tourism abroad by 80% to a mere $20 million.
Brand USA, which received up to $100 million (in ESTA revenue) from the government to match promotional funds provided by the private sector, had originally escaped cuts in the original incarnation of the bill, but the legislation was amended to its current parameters by a Senate committee, leaving the organization seemingly toothless in a competitive global travel market that has seen the U.S. “losing ground over the last decade,” according to U.S. Travel Association president and CEO Geoff Freeman.
In perhaps a foreshadowing of things to come, the administration abruptly fired five of Brand USA’s 12 directors in April, including Chair Elliott Ferguson, CEO of Destination DC, in what was seen as largely partisan move.
Freeman’s warning about global competitiveness at the recent IPW trade show in mid June was part of a broader plea for a “stronger, more seamless experience that meets the expectations of today’s international travellers” – some components of which the U.S. Travel boss says did receive “a giant step forward” with provisions in the new legislation for “necessary investments” in air traffic control and Customs and Border Protection.
However, despite the U.S. travel industry rallying around Brand USA, Freeman and Brand USA president and CEO Fred Dixon’s optimism at IPW that the organization would continue unaffected was unfounded.
At a press conference at the annual travel trade event, before launching Brand USA’s glittering new “America the Beautiful’ campaign, Dixon acknowledged conversations around the organization’s uncertain future and the “outpouring of support” it was receiving, while observing that travel is a $2.9-trillion industry in the U.S. that sees foreign visitors spend $700 million every day in the country contributing to the employment of 15 million workers.
Moreover, with 1.4 million incremental visitors converted in 2024 alone and over 10 million in the past 12 years (including during COVID), “the work of Brand USA has never been more important,” Dixon said.
And backed by such an impressive CV, he added, “We are engaged in an unprecedented level of dialogue with every level of government, including the White House, and this gives us confidence that we will deliver well into the future.”
Freeman similarly declared, “We are doing everything we can to protect Brand USA.”
Future of Brand USA
But with the future of Brand USA, or at least its effectiveness going forward, now uncertain, the travel industry on both sides of the border is faced with many questions. In recent years, the organization has supported programs and tour company efforts in Canada with co-op investments, has similarly funded or co-funded numerous FAM trips for the Canadian trade, and maintained a strong presence in the market, including roadshow events across the country. (It should be noted that the organization is still reeling from the untimely death in April – at an event in Toronto – of its popular Director of Global Trade Development – Canada, Casey Canevari).
Brand USA has come a long way since its inception in 2009, and its formation had been a long time coming – but not without stops and starts. Former U.S. Travel president and CEO Roger Dow once told this reporter that every new administration had to be “educated” about the value of tourism to the country’s overall economic well-being. And, surprisingly, the toughest nut to crack, he revealed, was president Barack Obama, who eventually embraced the sector’s value wholeheartedly.
In 2025, the U.S. travel industry appears to be back to square one, though.
And while he hailed the “important gains” in the new legislation, Freeman also expressed frustration with steep increases to non-immigrant visa fees, which include a new $250 Visa Integrity Fee, and a hike of the Electronic System for Travel Authorization (ESTA) fee for Visa Waiver Program travellers from $21 to $40.
Freeman noted that President Trump’s 2026 budget requests full funding for Brand USA, and called on Congress to meet that request, which he says is critical for the success of America’s 250th anniversary and other major global events that will take place during President Trump’s term (like the FIFA World Cup next year and 2028 Olympics in Los Angeles).
“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,” said Freeman. “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.”
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