Senate GOP aims to slash Brand USA budget by 80%; U.S. Travel “deeply concerned”

The U.S. Senate Committee on Commerce, Science, and Transportation has proposed slashing Brand USA's funding from $100 million to just $20 million, reports say.

The move is said to be part of a broader plan to trim the federal deficit by over $40 billion over the next ten years and eliminate more than $1.4 billion in what the committee deems unnecessary expenditures.

Senator Ted Cruz (R-Texas), who chairs the committee, introduced the budget changes through a  U.S. budget reconciliation process.

He stated that the proposed adjustments reflect the goals set by President Donald Trump and congressional Republicans—“to unleash America's full economic potential and keep her safe from enemies."

As reported by Skift, a severe cut that, if it became law, would severely limit Brand USA’s ability to promote the U.S. as a destination.

The U.S. Travel Association is “deeply concerned” about the proposal, saying it would "significantly impact every sector of our industry," reports Travel Weekly. 

"U.S. Travel continues to advocate strongly to both the White House and Congress," the association said. "As the reconciliation process moves forward, Congress must align with the President's budget and fully fund Brand USA. With $2.9 trillion in economic output and over 15 million American jobs at stake, the travel industry cannot afford to be overlooked."

In a separate statement posted to LinkedIn, U.S. travel wrote that such cuts “would have serious consequences for the entire travel industry.”

“Brand USA is essential to attracting international visitors and supporting the U.S. travel economy. The President included $100 million in his budget for Brand USA—Congress must do the same,” the association wrote.

Brand USA receives funding from a share of the fees collected through the Electronic System Travel Authorization (ESTA) from international visitors. The proposed budget cuts are being considered at a time when international travel to the U.S. is expected to decline by 5.1 per cent this year—a significant drop from the earlier forecast of 8.8 per cent growth, according to Tourism Economics.

The downturn is particularly pronounced among travellers from Canada and Western Europe.

Canadian arrivals have plummeted by 20.2 per cent, with land border crossings in April dropping a staggering 35.2 per cent compared to the previous year. Air travel from Canada fell by 19.9 per cent over the same period.

READ MORE: Travel associations form coalition to promote cross-border tourism

Western European travel to the U.S. saw a more modest but still significant 5.8 per cent decline, Tourism Economics says.

A persistently strong dollar and widespread media coverage of border security incidents and national travel advisories have further contributed to a negative image of the U.S. abroad.

"Shifting sentiment and perceptions of the U.S. are expected to continue to weigh heavily on travel demand," said Aran Ryan, director of industry studies at Tourism Economics, in a statement last month. "These figures emphasize the importance of monitoring trends and top markets, helping us forecast future impacts on the travel economy."

Brand USA in Canada

Brand USA recently concluded its Canada Connect 2025 series with nearly 1,000 appointments across five cities across the country.

The multi-city initiative was held to strengthen ties between U.S. tourism organizations and Canadian travel professionals. It included East Coast events in Toronto and Montreal from April 28 to May 1, and West Coast events in Calgary, Edmonton and Vancouver from May 20 to 22.

 “The success of the Canada Connect series reinforces our commitment to the Canadian market and the relationships our teams and partners have built over the last several years,” said Jackie Ennis, VP of global trade development at Brand USA, in a press release.  “Canada remains the top international market for U.S. inbound travel, and these events allow us to engage with the Canadian travel trade and showcase the diversity of U.S. destinations.”

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