In a strong response to impending budget cuts, small towns and major cities across the United States, from Virginia to Illinois to California, have expressed their deep concern regarding the proposed reduction of Brand USA’s federal funding by 80%.
The White House’s 2026 budget initially included full funding for Brand USA. However, in a significant move during the budget reconciliation bill process, the Senate Committee on Commerce, Science and Transportation proposed slashing the organization’s budget from $100 million to just $20 million.
Geoff Freeman, CEO of the U.S. Travel Association, emphasized the organization’s commitment to fighting for Brand USA’s necessary funding during the recent IPW conference in Chicago.
Freeman declared that they are doing everything within their power to protect the organization and noted, “We’ve got more allies on Capitol Hill than we do opponents.”
The strength of the travel industry comes from collective action. Freeman remarked, “We will get folks speaking up. The industry is activated in a way unlike anything I’ve seen before, coming to Brand USA’s defense. I’m confident that, one way or another, we will ensure Brand USA’s continued success.”
He articulated the critical triad necessary for attracting visitors to the U.S., stating, “If you want to get visitors to the United States, it’s a three-legged stool. It’s one part visas, one part customs, and one part promotion. Any stool with two legs is going to collapse.”
The concerns surrounding Brand USA’s funding extend beyond the 2026 budget.
The organization traditionally derives funds from private-sector donations, which are then matched by up to $100 million in federal funding sourced from a $17 charge on each Electronic System Travel Authorization (ESTA) fee collected from international travelers.
However, sources within the industry have indicated that the Treasury Department has not disbursed the ESTA funds to Brand USA since January, attributing the delay to a backlog of paperwork.
While some lag in funding during administrative changes is standard, insiders noted that this current delay exceeds what has been experienced in previous transitions, limiting Brand USA’s capabilities to initiate planned projects and programs.
Chris Heywood, a spokesperson for Brand USA, expressed cautious optimism regarding the situation. “We are hopeful that the funds will still be processed and sent to Brand USA,” he stated.
Adam Burke, CEO of the Los Angeles Tourism & Convention Board, highlighted the urgency of Brand USA’s situation given the impressive return on investment it has historically provided. Burke pointed out that Brand USA has generated $24 in visitation for every dollar spent over its 15-year existence.
He stressed that its role is especially vital given the downturn in inbound tourism this year, noting the shift from a $53 billion trade surplus in tourism in 2019 to an anticipated $50 billion deficit.
“That’s a $100 billion swing,” Burke remarked, underscoring the importance of Brand USA’s advocacy for the travel and tourism industry, which employs 16.5 million people nationwide. “We must support them, as they exemplify how a rising tide raises all boats.”
Despite the challenges posed by reduced funding and delays, Brand USA has announced plans to launch a significant campaign aimed at enhancing inbound travel numbers, set to roll out in August.
Destinations across the country are expressing the importance of Brand USA’s efforts, especially in light of upcoming major events such as America’s 250th birthday, the World Cup, and the Olympics.
For smaller cities lacking significant marketing resources, Brand USA serves as a vital avenue for international exposure. Alex Kenzakoski, a senior public relations manager at Visit Pittsburgh, articulated the significance of Brand USA’s work.
“Brand USA is helpful in promoting our city that is often shadowed,” he said, highlighting the advantages of its comprehensive promotional capabilities.
Sara Harvey, director of communications for Destination Niagara USA, echoed similar sentiments, asserting the crucial need for Brand USA’s presence in international markets.
Harvey noted, “While we have the waterfalls that are internationally recognized, it’s absolutely crucial that we have that presence in the international market.”
She added that support from Brand USA is particularly critical in the face of wavering visitor sentiment from top markets like the U.K. and Germany.
Fred Dixon, CEO of Brand USA, affirmed that a significant portion of their efforts is to assist smaller destinations, stating, “The bulk of the work the organization does is with those smaller destinations. That’s exciting because that’s where we see impact.”
He expressed pride in Brand USA’s role in driving international travel to communities eager to welcome visitors from abroad and recognizing their value to the local economy.
Larger destinations also firmly advocate for Brand USA’s crucial role in tourism, noting that the U.S. remains the only G20 country without a dedicated federal tourism agency.
Kristen Reynolds, CEO of Choose Chicago, voiced concerns about the challenges faced by U.S. tourism promotion compared to other Western nations.
Reynolds emphasized the need to engage with elected leaders at the federal level to ensure the continued support of Brand USA’s budget, stating, “Just like smaller destinations rely on bigger destinations like Chicago to amplify the state, we rely on Brand USA to promote the U.S. as a whole.”
She concluded, “Once people are interested in the USA, we say underneath them, ‘Visit Chicago.’ Having Brand USA as an umbrella organization is paramount to our international strategy.”
image source from：travelweekly
