CHICAGO — Concerns are mounting across various states from Virginia to Illinois to California regarding the potential reduction of visitor numbers to the United States if Congress follows through with a proposal to cut 80% of Brand USA’s federal funding.
The proposed budget for 2026, introduced by the White House, initially included full funding for Brand USA. However, in June, the Senate Committee on Commerce, Science and Transportation suggested drastically slashing the organization’s budget from $100 million to $20 million as part of budget reconciliation efforts.
Geoff Freeman, CEO of the U.S. Travel Association, highlighted the urgency of protecting Brand USA during the association’s recent IPW conference, asserting that there are more supporters on Capitol Hill than opponents. “We are doing everything in our power to protect Brand USA,” Freeman stated, emphasizing the active involvement of industry stakeholders.
Freeman elaborated on the organization’s critical role: “If you want to get visitors to the United States, it’s a three-legged stool—visas, customs, and promotion. Any stool with two legs will collapse.” This statement echoes the sentiments of many destinations that rely heavily on Brand USA’s marketing efforts.
The Funding Challenge
In addition to budget concerns, Brand USA faces challenges with its funding mechanism. The organization receives up to $100 million in federal support matched by private-sector donations, derived from a $17 portion of each Electronic System Travel Authorization (ESTA) fee collected from international travelers. However, an insider revealed that due to a paperwork backlog, the Treasury has not distributed the ESTA funds to Brand USA since January.
This delay is not uncommon during transitions between administrations, but sources suggest that it has persisted longer than in previous cases, resulting in bottlenecks for essential initiatives. “We remain hopeful that the funds will still be processed,” remarked Chris Heywood, a spokesperson for Brand USA.
Adam Burke, CEO of the Los Angeles Tourism & Convention Board, expressed concern over the budget threats faced by Brand USA, highlighting its impressive track record—reportedly generating $24 in visitation for every dollar spent since its inception. Burke emphasized the organization’s critical role in promoting U.S. tourism, particularly as inbound tourism numbers decline; the industry has seen a stark shift from a $53 billion trade surplus in tourism in 2019 to a $50 billion deficit.
The Global Impact of Brand USA
While Brand USA faces funding issues and budget cuts, it remains committed to launching initiatives aimed at increasing inbound travel. A major campaign is set to kick off in August 2023, as announced at the IPW event, to help counteract declining visitor numbers.
Representatives from destination marketing organizations stressed the importance of Brand USA, especially with significant events like the U.S. Bicentennial, the World Cup, and upcoming Olympic Games on the horizon. Smaller U.S. cities, which often lack the resources for extensive marketing, rely heavily on Brand USA for international exposure. For instance, Visit Pittsburgh noted the advantage of having Brand USA promote the city, which may otherwise be overshadowed.
Sara Harvey, director of communications for Destination Niagara USA, underscored the necessity of maintaining an international presence, especially when visitor sentiment in key markets such as the U.K. and Germany wanes. The visibility provided by Brand USA is invaluable, particularly during challenging times.
Fred Dixon, CEO of Brand USA, remarked that much of the organization’s work focuses on promoting smaller destinations, which see significant benefits from international visitors. Larger locations echo this importance, as the U.S. remains the only G20 nation without a federal agency dedicated to tourism policy.
Kristen Reynolds, CEO of Choose Chicago, voiced the challenges U.S. cities face in competing internationally, stressing the necessity of Brand USA in amplifying their message on a global scale. “Once people are interested in the USA, we say ‘Visit Chicago’ underneath that umbrella,” she stated, emphasizing Brand USA’s critical role in the international marketing strategy.
For more information on Brand USA and the implications of federal funding, visit [Brand USA’s official site](https://www.thebrandusa.com) to learn more about upcoming initiatives aimed at boosting tourism and visitor engagement.
