Update 7/3/25 — The legislation was passed and signed by the president without restoring Brand USA funding.

The U.S. Senate narrowly passed a Republican-backed budget bill that would significantly cut funding for Brand USA. Now headed for the House of Representatives, the bill would slash 2026 matching funds for Brand USA by 80% from $100 million to $20 million. Skift reports:

Brand USA hasn’t received any matching funds from the federal government since January.
Brand USA is planning for the worst, and downsizing is one option in the event matching funds do not come soon.

While the original legislation introduced by the White House — dubbed the One Big Beautiful Bill Act — included full funding for Brand USA, as part of the budget reconciliation bill process, the Senate Committee on Commerce, Science and Transportation proposed the cut in June. Vice President JD Vance cast the tiebreaking vote and the bill now goes to the House, where it faces an uncertain future. If passed, it will head to the president’s desk.

Travel Weekly reports, “Since its inception in 2009, Brand USA’s private-sector donations are matched by up to $100 million in federal funding, which is provided by a $17 portion of every Electronic System Travel Authorization (ESTA) fee that is collected from international travelers. The current bill does not specify what the ESTA fees would be used for instead of Brand USA.”

Concerns that go beyond funding are being voiced widely across the travel and tourism industry. Richard W. Peterson, President of the U.S. Cultural & Heritage Marketing Council said, “Brand USA has been a catalyst for driving international travel to all corners of our country — amplifying the unique cultural and heritage experiences that shape our diverse tourism landscape…This is not just about funding a marketing organization. It’s about investing in jobs, small businesses, and the stories that make our destinations truly unforgettable.”

*CEO Fred Dixon at the IPW conference in June unveiling Brand USA’s new marketing campaign.*
*(photo credit: Brand USA*)