Brand USA to recalibrate after $80M funding cut: CEO

The budget reconciliation bill passed by the U.S. House of Representatives on Thursday (July 3) included an $80 million cut to Brand USA's funding – an outcome that "will require a significant recalibration of our resources and programming that is still to be determined," said CEO Fred Dixon in a statement.

Dixon, however, appears to be hopeful that the matching funds—slashed from $100 million to just $20 million (in USD)—can eventually be reinstated.

“While we are disappointed with the reduction from $100 million to $20 million in federal matching funds in Congress’ budget reconciliation bill, Brand USA remains committed to our mission and looks forward to opportunities for funding restoration in the future,” Dixon said.

The CEO suggested that there may still be a chance to reinstate Brand USA’s funding through the fiscal year 2026 appropriations process this fall.

“In the meantime, we remain fully engaged and in deep dialogue with every level of the administration,” he said.

U.S. Travel responds 

Brand USA is the marketing organization responsible for promoting the United States as a tourist destination.

Word that the U.S. Senate Committee on Commerce, Science, and Transportation was proposing to slash the organization’s funding first surfaced last month.

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.

The cutbacks will ultimately limit Brand USA’s ability to promote the United States as a destination.

The U.S. Travel Association's President and CEO Geoff Freeman issued a statement after Congress’ approval of the legislative package sent to President Donald Trump for signature.

Freeman called the legislation “a giant step in the right direction when it comes to improving America’s travel infrastructure and security.”

Some “key wins” include modernizing air traffic control, increased customs staffing, border security enhancements, and Homeland Security funding to prepare for upcoming global events.  

But he emphasized the need for Congress to restore full federal funding for Brand USA.

“Failing to fully fund Brand USA is a missed opportunity—especially as the administration seeks to maximize a historic slate of global events on American soil,” said Freeman.

He also expressed frustration with the bill’s steep increases to non-immigrant visa fees.

The road ahead

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., amid President Trump’s global trade war, 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 reduction to Brand USA’s funding comes on the heels of the organization announced its new “America the Beautiful” campaign, which is aimed at reigniting international travel to the United States.

Unveiled during the U.S. Travel Association’s IPW conference in Chicago last month, the campaign, set to launch this August, presents a renewed invitation for the world to rediscover the diverse landscapes and local stories of the U.S.

Faced with cutbacks, Brand USA must now determine the direction of this effort and make decisions about potential staffing or other reductions to address the budget shortfall.

In his statement, Dixon said the organization remains focused on “growing legitimate international inbound travel and the vital boost it provides to the U.S. economy” – especially with major global events on the horizon like America250 (which is the 250th anniversary of the U.S.) and the FIFA World Cup. 

“We thank the industry for their unwavering support of Brand USA throughout this entire process,” he said.

Brand USA in Canada

Brand USA concluded its Canada Connect 2025 series in the spring 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 events in Toronto and Montreal from April 28 to May 1, and 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 earlier statement.  “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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