Travel agents selling the US may face a tougher sell, with the US House of Representatives approving a sweeping tax and spending bill that slashes Brand USA funding and increases visitor fees.
The bill, dubbed the “big beautiful bill”, cuts funding to Brand USA from US$100 million (approx. AU$152m) to just US$20 million (AU$30m) for the fiscal year – a major blow to the country’s international marketing efforts, especially with the 2026 FIFA World Cup and 2028 LA Olympics on the horizon.
US Travel Association president and CEO Geoff Freeman said the timing couldn’t be worse. “Failing to fully fund Brand USA is a missed opportunity – especially as the administration seeks to maximise a historic slate of global events,” he said.
Agents already battling a weak Aussie dollar and traveller concerns about long queues and strict border controls now face another hurdle: a jump in fees.
The ESTA fee for Visa Waiver Program travellers – which includes Australians – will increase from US$21 to US$40 (over AU$60), while a new US$250 (AU$380) Visa Integrity Fee will be introduced for visitor visas. Though it won’t impact Aussie tourists, the optics aren’t good.
“These added costs are a self-imposed tariff on one of our nation’s largest exports – international travel spending,” Freeman said. “They do nothing to improve the travel experience and only discourage visitation.”
Brand USA CEO Fred Dixon said the cuts will force a significant recalibration of resources but emphasised the organisation’s ongoing commitment to supporting the international travel trade.
“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,” Dixon said.
The World Travel & Tourism Council (WTTC) estimates the US could lose up to US$12.5 billion (AU$19.4 billion) in international visitor spending this year – a figure that could have ripple effects for Aussie agents with strong US product offerings.
Still, there are positives. The bill includes:
- US$12.5b (AU$19b) for air traffic control upgrades
- US$6.1b (AU$9.3b) to hire 5,000 new customs officers
- US$673m (AU$1b) to expand biometric screening
- US$1.6b (AU$2.4b) for security ahead of major global events
Freeman summed it up: “Smart infrastructure investments – but cuts to Brand USA and fee hikes send the wrong message to international visitors.”
