Senate proposal to slash Brand USA's budget sparks industry concerns
The Senate Committee on Commerce, Science and Transportation proposed cutting Brand USA's budget from $100 million to $20 million as part of an effort to reduce deficits by more than $40 billion over a decade and "rescind more than $1.4 billion in wasteful spending."
Sen. Ted Cruz (R-Texas), chairman of the committee, unveiled the legislative directives as part of the budget reconciliation bill process. Cruz said the revised budget's "provisions fulfill the mandate given to President Trump and congressional Republicans by the voters: to unleash America's full economic potential and keep her safe from enemies."
The U.S. Travel Association said it is "deeply concerned" about the proposal, saying it would "significantly impact every sector of our industry."
"U.S. Travel continues to advocate strongly to both the White House and Congress," the association said. "As the reconciliation process moves forward, Congress must align with the President's budget and fully fund Brand USA. With $2.9 trillion in economic output and over 15 million American jobs at stake, the travel industry cannot afford to be overlooked."
The Travel Tech Association also issued a statement about the proposed cut, saying, "Congress must fully fund the Travel Promotion Fund and maintain strong support for Brand USA."
"With the U.S. set to host the 2026 World Cup, America250 and the 2028 Olympics, the global spotlight is firmly on the U.S. travel industry," said Laura Chadwick, CEO of the Travel Technology Association. "The Senate's proposal to cut funding to the Travel Promotion Fund risks weakening America's tourism industry at this critical moment. Our members play a critical role in connecting travelers to local communities. We understand how tourism -- and Brand USA's work -- drives billions in spending in the U.S., supporting local jobs and businesses, and fueling economic growth in every state. We should not be pulling back, but leaning in. Congress must act to keep tourism strong for Americans and our national economy."
Brand USA is funded by a portion of the Electronic System Travel Authorization fees that are collected from international travelers. The proposed cuts come a time when the U.S. is on track to welcome 5.1% fewer inbound international travelers this year, according to Tourism Economics, down from an initial projection of 8.8% growth.
The World Travel & Tourism Council estimates the U.S. will lose $12.5 billion in international visitor spending in 2025.
Adam Burke, CEO of Los Angeles Tourism, said that in the face of these concerning statistics, the industry needs to "really lean in to support Brand USA."
"In advance of the World Cup and Olympics, this is an economic imperative," he said. "We've lost $100 million in terms of our service exports because of the downturn in tourism since the pandemic. And we desperately need to reclaim that share."
"People need to understand what a significant driver" Brand USA has been, Burke said.
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