Key Takeaways
• Proposed ESTA fee increase from $21 to $40 affects travelers from 42 Visa Waiver Program countries starting May 2025.
• Congressional Budget Office estimates $3.8 billion in extra revenue and $3.1 billion federal deficit reduction from ESTA hike.
• Higher ESTA fees may hurt U.S. tourism, risking $12.5 billion revenue loss and delaying recovery until 2030.
The United States 🇺🇸 is considering a major change that could affect millions of travelers from around the world. In May 2025, lawmakers revealed a plan to nearly double the Electronic System for Travel Authorization (ESTA) fee, raising it from $21 to $40. This proposal, which is still under review in Congress, would impact visitors from 42 countries that are part of the Visa Waiver Program (VWP). These travelers currently use ESTA to visit the United States 🇺🇸 for short stays without needing a traditional visa. The possible fee hike has sparked concern among tourists, business travelers, and the travel industry, as well as questions about how it might affect tourism and the broader U.S. economy.
What Is Happening and Why Now?
On May 19, 2025, the Congressional Budget Office (CBO) released a report that included the proposed ESTA fee increase. The CBO is a non-partisan government agency that reviews the financial impact of new laws. According to the report, the fee hike is part of a larger budget plan being discussed by lawmakers in the House of Representatives. The main reason for the increase is to raise more money for border security, immigration enforcement, and related government programs. The United States 🇺🇸 has seen rising costs in these areas, and officials believe the extra revenue from the higher ESTA fee could help cover these expenses.
If the proposal becomes law, it would be the second time in just a few years that the ESTA fee has gone up. The last increase happened in May 2022, when the fee rose from $14 to $21. Now, with the new plan, travelers could soon pay almost double that amount.
How the Proposal Moves Forward
The process for changing the ESTA fee involves several important steps:
- House of Representatives Approval: The proposal must first pass in the House, possibly as part of a larger budget bill.
- Senate Approval: After the House, the Senate must also approve the plan. Senators can accept it, change it, or reject it.
- Resolving Differences: If the House and Senate pass different versions, they must agree on a final version.
- Presidential Signature: Once both chambers agree, the President must sign the bill for it to become law.
- Regulatory Changes: After the law is signed, agencies like U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS) would update their rules and systems. This usually involves publishing new regulations in the Federal Register.
Until all these steps are complete, the ESTA fee remains at $21. Travelers should keep an eye on official government updates for any changes.
What Is ESTA and Who Needs It?
The ESTA is an online travel authorization required for citizens of 42 countries that are part of the Visa Waiver Program. This program allows people from these countries to visit the United States 🇺🇸 for up to 90 days for tourism or business without getting a traditional visa. Some of the countries in the program include most European Union nations, Australia, Japan, and South Korea.
Key facts about ESTA:
– Required for all travelers from VWP countries, including children and infants.
– Valid for two years or until the traveler’s passport expires, whichever comes first.
– Allows multiple entries into the United States 🇺🇸 during the validity period.
– Must be obtained before travel: Travelers should apply at least 72 hours before their flight or cruise.
– Apply online: The official ESTA application can be found on the U.S. Customs and Border Protection ESTA page.
Travelers can also use the official “ESTA Mobile” app, available for both iOS and Android devices, to submit their applications.
How Much Does ESTA Cost Right Now?
Currently, the ESTA fee is $21. This amount is split into two parts:
– $4 processing fee: This covers the cost of running the ESTA system.
– $17 authorization fee: This part of the fee helps fund travel promotion and other government programs.
The authorization fee was increased from $10 to $17 in 2020 as part of a budget law. The overall fee rose from $14 to $21 in May 2022. If the new proposal passes, the total fee would jump to $40.
Why Is the Fee Increase Being Proposed?
The main reason for the proposed ESTA fee increase is to raise more money for the federal government. According to the Congressional Budget Office, the higher fee could:
– Bring in about $3.8 billion in extra revenue between 2025 and 2034.
– Lead to $716 million in new government spending during the same period.
– Reduce the federal deficit by $3.1 billion over nine years.
Lawmakers say the extra money is needed to pay for border security, immigration enforcement, and related infrastructure. These areas have become more expensive in recent years, and officials are looking for ways to cover the rising costs.
What Does This Mean for Travelers?
If the ESTA fee goes up to $40, travelers from Visa Waiver Program countries will have to pay almost twice as much to visit the United States 🇺🇸. For families or groups, the cost can add up quickly, since each person—including children—needs their own ESTA.
Example:
A family of four would currently pay $84 in total ESTA fees ($21 x 4). If the fee rises to $40, the same family would pay $160.
This extra cost could make some travelers think twice about visiting the United States 🇺🇸, especially when other countries are making it easier and cheaper for tourists to visit.
Impact on U.S. Tourism
The proposed fee increase comes at a tough time for the U.S. tourism industry. According to the World Travel & Tourism Council (WTTC), the United States 🇺🇸 could lose $12.5 billion in tourism revenue in 2025. Tourist spending is expected to fall below $169 billion by the end of the year.
Julia Simpson, President and CEO of the WTTC, has warned that raising the ESTA fee could make things worse. She said, “The important thing about tourism is that it’s very resilient. If you press the right buttons, it will bounce back. But adding costs to ESTA will only make people more hesitant.” Simpson also pointed out that while other countries are making it easier for tourists, the United States 🇺🇸 seems to be putting up barriers.
The WTTC estimates that it may take until 2030 for U.S. tourism to fully recover to pre-pandemic levels. If the ESTA fee goes up, this recovery could take even longer.
How Does the U.S. Compare to Other Countries?
Many countries are working hard to attract more tourists by making travel easier and cheaper. For example:
– India 🇮🇳, the Middle East, and China 🇨🇳 are seeing strong growth in tourism.
– Europe 🇪🇺 is also doing well, with many countries welcoming more visitors.
In contrast, the United States 🇺🇸 is facing challenges. The travel and tourism sector is the largest in the world, worth nearly $2.6 trillion. Tourism makes up about 9% of the U.S. economy, supporting millions of jobs. Any changes that make it harder or more expensive for people to visit could hurt this important part of the economy.
What Are the Steps for Travelers Right Now?
While the proposed fee increase is still being discussed, travelers should take the following steps:
- Stay informed: Check official government websites for updates on the ESTA fee and application process.
- Apply early: Submit your ESTA application at least 72 hours before your trip.
- Use official channels: Only apply through the official ESTA website or the official mobile app to avoid scams.
- Check your ESTA validity: Remember that an approved ESTA is good for two years or until your passport expires, whichever comes first.
- Budget for possible changes: If you plan to travel to the United States 🇺🇸 in the near future, consider the possibility that the fee could go up.
What Does the Future Hold?
The proposal to increase the ESTA fee is still moving through the U.S. legislative process. It must be approved by both the House of Representatives and the Senate, and then signed by the President. After that, government agencies will need time to update their systems and rules. This means that any changes are unlikely to happen immediately.
Travelers and the travel industry will be watching closely to see what happens next. Some experts worry that raising the fee could make the United States 🇺🇸 less attractive to visitors, especially when other countries are working hard to welcome more tourists.
What Is the Visa Waiver Program?
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 visa. Instead, they must get an ESTA before traveling. The program was created to make travel easier while still keeping strong security measures in place.
Key points about the VWP:
– Includes 42 countries, such as the United Kingdom 🇬🇧, France 🇫🇷, Germany 🇩🇪, Australia 🇦🇺, Japan 🇯🇵, and South Korea 🇰🇷.
– Travelers must have a valid passport and an approved ESTA.
– The program is designed to encourage tourism and business travel while protecting U.S. borders.
For a full list of VWP countries and more details, visit the U.S. Department of State’s Visa Waiver Program page.
How Has the ESTA Fee Changed Over Time?
The ESTA program was created to help screen travelers before they arrive in the United States 🇺🇸. The fee has changed several times since the program began:
– Before May 2022: The fee was $14.
– May 2022: The fee increased to $21, following changes in U.S. budget laws.
– 2025 proposal: Lawmakers are now considering raising the fee to $40.
These changes reflect the government’s need to cover the costs of running the program and supporting other travel-related activities.
What Are the Arguments For and Against the Fee Increase?
Supporters of the fee increase say that the extra money is needed to pay for border security and immigration enforcement. They argue that travelers who benefit from the Visa Waiver Program should help cover these costs.
Critics worry that the higher fee will discourage people from visiting the United States 🇺🇸. They point out that tourism is a major part of the U.S. economy and that making travel more expensive could hurt hotels, restaurants, airlines, and other businesses.
Julia Simpson of the WTTC summed up the concern by saying that while other countries are “rolling out the red carpet,” the United States 🇺🇸 seems to be “putting a ‘closed’ sign on their door.”
What Should Travelers and the Industry Do Next?
As the proposal moves through Congress, both travelers and those working in the travel industry should:
– Monitor official sources for updates on the ESTA fee and any changes to the application process.
– Educate travelers about the importance of using the official ESTA website to avoid scams.
– Plan for possible cost increases by adjusting travel budgets and business plans.
– Advocate for policies that support tourism and make travel to the United States 🇺🇸 as easy and affordable as possible.
According to analysis by VisaVerge.com, staying informed and prepared is the best way to handle possible changes to the ESTA fee and other travel requirements.
Where to Find Official Information
For the most accurate and up-to-date information on ESTA, the Visa Waiver Program, and travel to the United States 🇺🇸, always use official government sources. The U.S. Customs and Border Protection ESTA page is the best place to apply for ESTA and find answers to common questions.
Final Thoughts
The proposed increase in the ESTA fee is a significant development for international travelers and the U.S. tourism industry. While the plan is still under review and has not yet become law, it highlights the ongoing debate about how to balance security, government funding, and the need to keep the United States 🇺🇸 open and welcoming to visitors. Travelers should stay alert for updates, use official channels for their applications, and plan ahead for possible changes in travel costs. The coming months will be important for anyone planning a trip to the United States 🇺🇸 or working in the travel industry, as lawmakers decide the future of the ESTA fee and the Visa Waiver Program.
Learn Today
ESTA → Electronic System for Travel Authorization; an online system authorizing short-term travel to the U.S. under the Visa Waiver Program.
Visa Waiver Program → A U.S. program allowing citizens from 42 countries to visit without a visa for up to 90 days using ESTA.
Congressional Budget Office → A non-partisan U.S. agency analyzing the budgetary impact of proposed laws and policies like the ESTA fee increase.
Authorization Fee → Part of the ESTA fee funding travel promotion and government programs, currently $17 of the $21 total.
Federal Register → The official U.S. government publication where updated regulations, including ESTA fee changes, are formally announced.
This Article in a Nutshell
The U.S. plans to raise the ESTA fee from $21 to $40 in 2025, impacting travelers from 42 countries. This aims to fund border security but raises concerns about harming tourism and the economy amid a fragile travel recovery.
— By VisaVerge.com
