Key Takeaways
• ESTA fee under Visa Waiver Program rises from $21 to $40 starting July 2025.
• Brand USA’s federal funding cuts from $100 million to $20 million impact U.S. tourism marketing.
• Higher fees and reduced marketing may decrease international visitors, risking $12.5 billion loss.
International travelers planning to visit the United States 🇺🇸 will soon face higher costs and a changing tourism landscape. Starting July 2025, the ESTA fee—the charge for the Electronic System for Travel Authorization required under the Visa Waiver Program—will nearly double. At the same time, Brand USA, the country’s official tourism marketing agency, is facing a dramatic cut in federal funding. These changes come at a critical time for the U.S. tourism industry, which is still working to recover from the effects of the COVID-19 pandemic and is preparing for major global events like the 2026 World Cup and 2028 Olympics.
Let’s break down what’s happening, why it matters, and how these changes could affect travelers, the tourism industry, and the U.S. economy.
What’s Changing: ESTA Fee Increase and Brand USA Funding Cuts
Who is affected?
Travelers from countries that participate in the Visa Waiver Program—including Australia, the United Kingdom, Japan, and many European nations—will be directly impacted by the ESTA fee increase. The tourism industry, U.S. businesses, and local economies that rely on international visitors will also feel the effects of both the fee hike and the funding cuts to Brand USA.
What’s happening?
– The ESTA fee will rise from $21 to $40 per traveler.
– Brand USA will see its federal funding drop from $100 million to just $20 million.
When do these changes take effect?
The new ESTA fee is set to begin in July 2025. The Brand USA funding cut is part of the current federal budget cycle.
Where is this happening?
These changes apply to all travelers entering the United States 🇺🇸 under the Visa Waiver Program and affect tourism marketing efforts worldwide.
Why are these changes being made?
The fee increase is partly intended to help fund Brand USA, but with federal support slashed, the agency will have fewer resources to promote U.S. tourism. Lawmakers have cited budget constraints, but industry leaders warn that these moves could hurt the country’s ability to attract international visitors.
How will this impact travelers and the tourism industry?
Travelers will pay more to visit the United States 🇺🇸, and the country may become less competitive as a travel destination. The tourism industry fears a drop in international visitors and spending, which could slow economic recovery.
The ESTA Fee: What It Is and Why It’s Going Up
The Electronic System for Travel Authorization (ESTA) is an online system that determines if travelers from Visa Waiver Program countries can enter the United States 🇺🇸 without a traditional visa. Instead of filling out a paper form on the plane, travelers now apply online before their trip.
Key facts about the ESTA fee:
– Current fee: $21
– New fee (from July 2025): $40
– For travelers from Australia, this means a jump from about AU$32 to over AU$60.
– The fee is paid online as part of the ESTA application process.
Why is the fee increasing?
The fee is meant to cover the costs of running the ESTA system and to help fund Brand USA’s marketing efforts. However, with federal funding for Brand USA being cut, the higher fee may not be enough to keep U.S. tourism promotion strong.
How to apply for ESTA:
1. Check eligibility: Make sure your country is part of the Visa Waiver Program. You can find the list of eligible countries on the U.S. Customs and Border Protection ESTA page.
2. Submit your application: Fill out the online form with your personal and travel details.
3. Pay the fee: The new fee will be $40.
4. Wait for approval: Most applicants receive a response within minutes, but it can take up to 72 hours.
Tip: Always use the official government website to apply for ESTA to avoid extra charges from third-party sites.
Brand USA: What It Does and Why Funding Matters
Brand USA is the official destination marketing organization for the United States 🇺🇸. Its job is to encourage people from around the world to visit the country. Brand USA runs advertising campaigns, creates travel guides, and works with partners to showcase what the United States 🇺🇸 has to offer.
How is Brand USA funded?
– Federal matching funds: The U.S. government matches private sector contributions, up to a set limit.
– Private sector contributions: Airlines, hotels, and other travel businesses help fund Brand USA’s work.
What’s changing?
– Federal funding is dropping from $100 million to $20 million.
– This means Brand USA will have far less money to spend on marketing campaigns, especially with big events like the World Cup and Olympics coming up.
Why does this matter?
– Without strong marketing, the United States 🇺🇸 could lose visitors to other countries that are investing more in tourism promotion.
– Local economies, hotels, restaurants, and attractions that depend on international travelers could see fewer customers.
The Visa Waiver Program: Who Benefits and How It Works
The Visa Waiver Program (VWP) allows citizens of certain countries to travel to the United States 🇺🇸 for tourism or business for up to 90 days without getting a traditional visa. Instead, they must get an approved ESTA before their trip.
Benefits of the VWP:
– Makes travel to the United States 🇺🇸 faster and easier for millions of people each year.
– Helps boost the U.S. economy by encouraging more visitors.
Countries in the VWP include:
– Australia 🇦🇺
– United Kingdom 🇬🇧
– Japan 🇯🇵
– Germany 🇩🇪
– France 🇫🇷
– And many others
To see the full list of eligible countries and learn more about the program, visit the U.S. Department of State’s Visa Waiver Program page.
Economic and Industry Impact: What the Numbers Say
Tourism is big business for the United States 🇺🇸.
International visitors spend billions of dollars each year on hotels, food, shopping, and attractions. This spending supports jobs and helps local economies across the country.
According to the World Travel & Tourism Council (WTTC):
– The United States 🇺🇸 could lose up to $12.5 billion in international visitor spending this year.
– The combination of a higher ESTA fee and less marketing from Brand USA is expected to make the country less attractive to travelers.
Industry leaders are worried.
– The U.S. Travel Association calls the ESTA fee hike a “self-imposed tariff” on international travel spending.
– Freeman, a spokesperson for the association, described the Brand USA funding cuts as “foolish,” warning that the country risks losing out to other destinations.
Why does this matter?
– Every international visitor who decides not to come to the United States 🇺🇸 means less money for American businesses and workers.
– With major events like the 2026 World Cup and 2028 Olympics on the horizon, the country needs strong marketing to attract visitors.
Stakeholder Reactions: What Key Groups Are Saying
Travelers:
Many travelers are frustrated by the higher ESTA fee, especially families who must pay for each person. Some may choose other destinations where entry costs are lower.
Travel Industry:
Hotels, airlines, and attractions are concerned that fewer international visitors will hurt their business. They rely on Brand USA’s marketing to reach potential travelers.
Government and Lawmakers:
Some lawmakers argue that budget cuts are necessary, but others warn that underfunding tourism promotion could cost the country much more in lost revenue.
Brand USA:
The agency says it will do its best with the resources it has, but warns that its ability to run global campaigns will be limited.
The Legislative Process: What Happens Next
The budget bill that includes the ESTA fee increase and Brand USA funding cut has passed the Senate. It is now awaiting further action in the House of Representatives. Once both chambers agree on the final version, it will go to President Trump for his signature.
Industry groups are pushing for changes.
– There are ongoing efforts to restore Brand USA’s funding in future budget cycles.
– Travel leaders are meeting with lawmakers to explain why tourism promotion is so important for the economy.
What could change?
– If enough lawmakers support restoring funding, Brand USA could get more money in the next budget.
– The ESTA fee could be reviewed again in the future, depending on how it affects travel numbers.
Step-by-Step: How to Apply for ESTA Under the New Fee
If you’re planning to visit the United States 🇺🇸 under the Visa Waiver Program, here’s what you need to do:
- Check if your country is eligible.
Visit the official ESTA website to see if you qualify. Gather your documents.
You’ll need your passport and travel details.Fill out the online application.
Enter your personal information, travel plans, and answer security questions.Pay the ESTA fee.
Starting July 2025, the fee will be $40 per person. Payment is made online by credit or debit card.Submit your application.
Most people get a response within minutes, but it can take up to 72 hours.Print or save your approval.
You don’t need to bring a paper copy, but it’s a good idea to have your approval number handy.
Important: Only use the official government website to avoid scams and extra fees.
Practical Tips for Travelers
- Budget for the higher ESTA fee. If you’re traveling with family or a group, the costs can add up quickly.
- Apply early. Don’t wait until the last minute, as processing can take up to three days.
- Watch for updates. Policy changes can happen quickly, so check official sources before you book your trip.
- Consider travel insurance. With higher upfront costs, protecting your investment is more important than ever.
Looking Ahead: What’s Next for U.S. Tourism?
The United States 🇺🇸 faces tough competition from other countries that are investing heavily in tourism promotion. With the ESTA fee going up and Brand USA’s budget shrinking, some worry that the country could lose its edge as a top travel destination.
Industry leaders are calling for action:
– Restore full funding for Brand USA to support strong marketing campaigns.
– Keep entry costs reasonable to encourage more visitors.
– Work with lawmakers to find solutions that support both budget needs and economic growth.
As reported by VisaVerge.com, these changes come at a time when the tourism industry is still recovering and needs support to grow. The outcome of ongoing budget discussions will shape the future of U.S. tourism for years to come.
Where to Find More Information
- ESTA Application and Visa Waiver Program:
Visit the U.S. Customs and Border Protection ESTA page for official details, eligibility, and to apply. Brand USA:
Learn more about the agency’s work and current campaigns at the Brand USA website.Visa Waiver Program Countries:
Check the U.S. Department of State’s Visa Waiver Program page for the latest list of eligible countries.
Final Takeaways
- The ESTA fee is increasing to $40 in July 2025 for travelers under the Visa Waiver Program.
- Brand USA’s federal funding is being cut by 80%, limiting its ability to promote U.S. tourism.
- Travelers, businesses, and local economies could all feel the impact of these changes.
- Stay informed by checking official government websites for the latest updates and requirements.
By understanding these changes and planning ahead, travelers and industry professionals can better prepare for the new landscape of U.S. tourism.
Learn Today
ESTA → Electronic System for Travel Authorization allowing visa-free entry under the Visa Waiver Program online.
Visa Waiver Program → Program allowing nationals of select countries to visit the U.S. without a traditional visa up to 90 days.
Brand USA → Official U.S. tourism marketing agency promoting travel through advertising and partnerships.
Federal Funding → Government money provided to support public agencies like Brand USA.
International Visitors → Foreign travelers who enter a country for tourism or business purposes.
This Article in a Nutshell
Starting July 2025, the U.S. will double the ESTA fee and cut Brand USA’s marketing funds, risking fewer international travelers and economic losses amid major upcoming events.
— By VisaVerge.com
