Brand USA Funding Faces Uncertain Future Even as Inbound Travel Plummets

by Bruce Parkinson July 08, 2025

President Donald Trump’s ‘big beautiful bill’ will add an estimated $3.3 trillion to the nation’s debt, but when it comes to funding inbound tourism promotion, the sound you hear is budgets being slashed.

Brand USA, the official destination marketing organization (DMO) for the United States, will see its federal funding cut from US$100 million to just $20 million for the 2026 fiscal year.

The DMO currently earns $17 from every Electronic System Travel Authorization (ESTA) fee paid by an international traveller to visit the United States. That will change under the new legislation, though it is not specified how ESTA funds will be used instead of funding Brand USA. The organization is also partially funded by the private sector.

The Senate recently voted 50-50 on the bill, with all Democrats and Independents, and a few Republicans, voting not to pass the bill. Vice President JD Vance broke the tie with his vote passing the bill. It then made it through the House of Representatives before being signed into law by Trump on July 4.

*Many Canadians are boycotting the U.S. as a destination.*

Next year marks the 250 anniversary of the founding of the United States, and the FIFA World Cup of football is being hosted in the U.S. along with Canada and Mexico. With the massive budget cut, Brand USA’s ability to launch global campaigns to exploit these milestones will be challenged.

Earlier this year the U.S. Commerce Department fired five of the eleven members of the Brand USA board.

The defunding of tourism promotion comes at a time when international visitation to the U.S. has dropped significantly, especially from Canada, its leading source market. Trump’s threats about annexing sovereign countries like Canada and Greenland have chilled travel intentions, as have his trade and tariff threats and border security policies.

According to the WTTC, the U.S. could lose US$12.5 billion in tourism revenue this year. Many travel industry observers fear the cuts to Brand USA are likely to exacerbate and extend that decline.