The Trump administration’s “Big Beautiful Bill,” officially signed into law on July 4, includes a major investment in America’s air traffic infrastructure. The legislation allocates $12.5 billion to modernize the Federal Aviation Administration (FAA)’s air traffic control system. This funding will go toward improving equipment, technology, facilities, and overall safety within the aviation sector. According to Flight Global, this investment is intended to support the FAA in handling increased air traffic efficiently while enhancing traveler safety.
Brand USA Faces Major Budget Cuts
On the flip side, the bill deals a financial blow to Brand USA, the country’s official tourism marketing agency. Previously supported by $100 million in federal matching funds, Brand USA will now receive only $20 million. This drastic reduction comes at a critical time, as the U.S. prepares to host major global events like America250 and the 2026 FIFA World Cup.
Fred Dixon, President and CEO of Brand USA, addressed the situation, saying, “The current reduction will require a significant recalibration of our resources and programming that is still to be determined.” Despite the challenge, he emphasized the organization’s commitment to growing legitimate international inbound travel, citing its importance to the U.S. economy.
Visa and Travel Authorization Fees Increase
The bill also introduces new costs for international travelers entering the United States. A newly approved Visa Integrity Fee of $250 will apply to those issued nonimmigrant visas. In addition, the Electronic System for Travel Authorization (ESTA) fee for visitors from Visa Waiver Program countries will rise from $21 to $40. These countries include popular source markets for U.S. tourism such as the United Kingdom, Japan, France, Germany, Australia, and Spain.
While the exact date for the fee hike’s implementation is still undetermined, the increase is expected to affect tourists from more than 40 countries.
Economic Ripple Effect on U.S. Hospitality
The new visa and authorization fees could lead to reduced interest from international travelers due to increased travel costs. If inbound tourism slows down, the ripple effects could extend across the travel and hospitality sectors in the United States. This could result in adjustments to service pricing and offerings, not only for international visitors but also for domestic travelers.
How the Bill Was Passed
The Big Beautiful Bill, also known formally as the “One Big Beautiful Bill,” was narrowly passed in Congress. The House of Representatives approved it with a close 218–214 vote, while the Senate passed it with a 51–50 vote, where Vice President JD Vance cast the tie-breaking decision.
In summary, while the bill brings improvements to air travel infrastructure, its cuts to tourism promotion and increased traveler fees could present serious challenges to the U.S. tourism industry in the years to come.
