Brand USA has been dealt a setback after the U.S. Senate narrowly approved a budget proposal slashing its federal funding from $100 million to just $20 million for the 2026 fiscal year.
The legislation initially dubbed the One Big Beautiful Bill Act originally included full funding provisions for Brand USA, recognising its role in driving international visitor spending and supporting local economies. However, in June, the Senate Committee on Commerce, Science and Transportation introduced an amendment to reduce the allocation dramatically, citing broader fiscal pressures and competing budget priorities. The final Senate vote was evenly split, requiring Vice President JD Vance to cast the deciding ballot, tipping the measure through by a wafer-thin margin of 51 to 50. The proposal will now proceed to the House of Representatives, where its prospects remain uncertain and where advocates are expected to mount a determined effort to restore funding.
Brand USA, established in 2009, has traditionally operated through a public-private partnership model, in which private sector contributions are matched by federal support derived from a $17 fee attached to every Electronic System for Travel Authorization (ESTA) application paid by inbound travellers. Curiously, the current bill does not clarify how these ESTA funds would be repurposed if Brand USA’s budget is permanently reduced.
At this year’s IPW trade show in Chicago, Geoff Freeman, President and CEO of the U.S. Travel Association, struck a defiant yet measured tone. He emphasised that the association was “doing everything in our power to protect Brand USA,” while underscoring that many in Congress still appreciate the value of robust national tourism promotion.
That said, the mood at IPW was tinged with caution. Several delegates privately expressed concerns that a prolonged funding gap could restrict America’s competitive position as destinations from Europe to Asia ramp up investment in their own marketing campaigns to lure high-spending long-haul travellers.
The House Rules Committee said it will convene to deliberate on the bill on 1 July, after which amendments or negotiations could still reshape the outcome. In the meantime, Brand USA is pressing ahead with the rollout of a fresh marketing initiative, America The Beautiful determined to keep America front of mind among global travellers despite the funding uncertainty.
Observers note that while the budget cut is not yet final, the debate underscores the fragile political consensus around federal tourism promotion and the very real possibility that Brand USA may need to adapt to a leaner funding environment unless advocates can secure a reversal in the House or during final reconciliation.