Next year will mark several major milestones for U.S. tourism, including the nation’s 250th birthday, the Route 66 Centennial, and cohosting the FIFA World Cup along with Canada and Mexico (marking the first time since 1994 that the soccer event will take place in the United States). But a sweeping new bill could threaten turnout at these celebratory events—and disrupt the country’s broader tourism economy.
Last week, President Donald Trump’s “One Big Beautiful Bill,” which includes tax cuts and reductions in health programs like Medicaid, narrowly passed in the Senate with a 50–50 split. Vice President JD Vance’s tie-breaking vote sent the bill to the House of Representatives, which approved the measure days later; it was signed into law on July 4, 2025.
U.S tourism marketing takes massive funding hit
The travel industry is expected to feel the effects of the newly passed bill almost immediately, beginning with the significant cuts to the country’s tourism marketing agency.
Under the new bill, Brand USA, which promotes U.S. travel to international visitors, is subject to an 80 percent cut in federal funding; instead of $100 million to market to international visitors, it will have just $20 million to fulfill its mission of boosting inbound travel to the nation.
“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 U.S. economy, especially with major global events on the immediate horizon like America250 and the FIFA World Cup,” the organization’s president and CEO Fred Dixon, said in a statement in response to the passage of the bill.
But the repercussions of this massive reduction in funds have some tourism and trade groups alarmed.
In an emailed statement to Afar, Rosanna Maietta, CEO of the American Hotel & Lodging Association (AHLA), which represents more than 30,000 properties throughout the country, pointed out that the U.S. is still trying to “claw back to pre-pandemic travel levels,” making it “essential” for the country to continue to welcome international tourists. “AHLA continues to strongly support Brand USA and we encourage lawmakers to provide the organization with the budget needed to successfully fulfill its critical mission,” said Maietta.
In its 2024 economic impact report, Brand USA noted that its marketing efforts fueled 1.6 million international visits resulting in a total economic impact of nearly $13 billion and supporting 80,000 U.S. jobs.
Given what’s at stake and the challenges facing inbound travel to the USA, due to a combination of reduced marketing efforts and policies that have deterred foreign arrivals, tourism officials are already adjusting and rethinking strategies to encourage visitation. In May, Visit California launched a “California Loves Canada” campaign to promote travel from Canada to the Golden State following a drop in demand from our neighbors to the north, who represent the United States’ largest group of international visitors.
And Brand USA recently announced its new marketing campaign, “America the Beautiful,” which the company’s CEO Fred Dixon called “a clear message: the USA is open for business and ready to welcome legitimate international travelers.” Speaking last month at the U.S. Travel Association’s annual IPW conference in Chicago, Dixon said, “We’re confident this effort will spark renewed interest and deepen connections with audiences around the world.”
With the 2026 FIFA World Cup and the 2028 Summer Olympics on the horizon, Brand USA’s mission of courting global tourists—and their coveted tourism dollars—is more crucial than ever. But Dennis Schaal, founding and executive editor of Skift, a media outlet that covers the business side of global travel, isn’t convinced that any amount of marketing is going to help at this point since “the Trump administration is doing everything they can to discourage travel into the U.S.,” he said, including with the recently established travel ban.
So, what does this all mean for U.S.-based travelers? What impact, if any, will these tourism marketing spending cuts and other policy shifts in the bill have on domestic travel? Beyond the reduction in Brand USA funding, here are some of the ways—both good and bad—that the changes enacted by the One Big Beautiful Bill Act could affect travel.
More costly flights to/from Washington, D.C.
According to Schaal, travelers flying into the Washington, D.C. area may start to see higher airfares if airlines raise prices in response to the bill’s doubling the amount that the Metropolitan Washington Airports Authority pays to lease Ronald Reagan Washington National Airport and Dulles International Airport.
Air traffic control upgrades
A spokesperson for Airlines for America (A4A) said the bill will “have a positive impact on air travel” because of the investment in “overhauling our nation’s air traffic control system.” Indeed, Schaal noted that the bill’s authorization of air traffic control improvements stands to benefit travelers in the long term. For much-needed upgrades, $4.75 billion has been set aside for telecommunications infrastructure modernization, he said.
Fluctuating hotel rates and services
How a drop in international visitors might affect hotel rates and hospitality staffing remains to be seen. It’s possible that greater hotel availability will lead to higher room rates to make up for lost revenue. On the other hand, it’s also possible that in a bid to “fill empty rooms, [hotels will] lower rates,” said Schaal, adding that it could “lead to layoffs in hotels,” reminiscent of postpandemic times when some short-staffed hotels stopped offering a daily room cleaning.
