Esta fee to almost double as federal funding for Brand USA slashed

The US Congress has approved a sweeping legislative package that includes a hike in the Electronic System for Travel Authorisation (Esta) fee from $21 to $40.

 

The legislation also sees federal funding for the destination marketing organisation Brand USA cut from $100 million annually to just $20 million as part of broader federal spending cuts.

 

The reconciliation bill, also dubbed the ’big, beautiful bill’, has now been sent to President Donald Trump for his signature to become law.

 

The US Travel Association noted some “key wins” in the bill – such as funding for modernising air traffic control, increased customs staffing and security funding for the 2026 Fifa World Cup and 2028 Olympics – but criticised the fee hike and the funding cut to Brand USA.

 

Geoff Freeman, US Travel Association president and chief executive, said “bold, necessary investments in air traffic control and Customs and Border Protection will make a meaningful difference in the traveller’s experience” but added: “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.” 

 

More: Brand USA signs up to drive visitors during 250th anniversary year

 

Brand USA confident of funding deal despite proposal to slash budget

 

US hikes cost of visa waiver to $21 [May 2022]

 

Freeman emphasised that Congress must restore full federal funding for Brand USA, noting President Trump’s FY26 budget requests full funding for the organisation.

 

He also expressed frustration with the bill’s “steep” increases to non-immigrant visa fees.

 

The Esta is mandatory for travellers entering the US under the Visa Waiver Program (VWP) and is valid for two years.

 

“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,” said Freeman.

 

“Raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation’s largest exports: international travel spending.

 

“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.”

 

Fred Dixon, president and chief executive at Brand USA, said: “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.

 

“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.”