Brand USA CEO: Budget Bill Means 'Significant Recalibration of Operations'
The $80 million chop to Brand USA funding in the budget reconciliation bill, passed by the U.S. House of Representatives Thursday, "will require a significant recalibration of our resources and programming that is still to be determined," said CEO Fred Dixon in a statement.
Dixon is hoping that the matching funds, which were reduced to $20 million from the previous $100 million, can still ultimately be restored.
'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," he said.
There could still be an opportunity to restore the funding as part of the fiscal year 2026 appropriations bllls.
Deep Dialogue
"In the meantime, we remain fully engaged and in deep dialogue with every level of the administration," Dixon said. "We take confidence in the President's request for Brand USA's full funding in FY26 and look forward to Congress taking up those appropriations later this fall."
Brand USA will have to decide on the shape of its upcoming marketing campaign, America the Beautiful, slated for an August launch, and any staffing or other cuts to meet the fiscal shortfall.
Exacerbating the financial squeeze is that Brand USA hasn't received any federal matching funds since January, an unusually long dry spell compared with past changes of presidential administrations.
Dixon said Brand USA remains focused on upcoming international visitor draws, including America250 and the FIFA World Cup, both in 2026. International visits to the U.S. have been down for most of 2025, and still haven't reached pre-Covid levels.
The Numbers
Brand USA, a public-private partnership, was eligible for up to $100 million in annual federal matching funds sourced from the Electronic System for Travel Authorization fees that international travelers to the U.S. must pay. The legislation adopted by the House on Thursday cut those matching funds to a maximum of $20 million.
In its latest annual report, for fiscal year 2024, The Corporation for Travel Promotion (Brand USA) reported partner contributions of $68.5 million, in-kind contributions totaling nearly $63 million, and Travel Promotion Fund proceeds of $119.3 million. The partner contributions mostly come from state or local Destination Marketing Organizations, while the in-kind contributions are provided by media companies, airlines and online travel companies, often to be used in co-op advertising campaigns.
The dollar for dollar matching funds are based on contributions of unrestricted cash and in-kind contributions from non-federal sources.
US Travel's Reaction
In an X post Thursday, the U.S. Travel Association quoted its CEO Geoff Freeman as lauding parts of the budget bill, which President Trump is expected to sign Friday, including measures to improve U.S. infrastructure and security.
These included $12.5 billion to upgrade air traffic control; $4.1 billion to hire and train 5,000 CBP officers; $673 million to expand biometrics at border entry and exit points, and monies for planning, security, and operations surrounding the World Cup in 2026 and Olympics in 2028.
US Travel also posted on X: "'At the same time,'" Freeman said, ''foolish new fees on foreign visitors and reductions to Brand USA'' threaten international visitation. The bill cuts Brand USA's funding from up to $100M annually to just $20M—despite President Trump's FY26 budget request for full funding."
Travel Tech's View
As it did when the Senate passed the budget bill Tuesday, Travel Technology Association CEO Laura Chadwick in a statement praised several elements of the legislation that enhance domestic research and development, as well as innovation.
"While this bill provides crucial support for innovation and investment, unfortunately it also cuts funding for Brand USA at a time when the U.S. should be doubling down on promoting tourism, not pulling back," Chadwick said. "With major global events like the 2026 World Cup, America250, and the 2028 Olympics on the horizon, this is a critical moment to strengthen — not weaken — our international marketing efforts."
Airports Council International, North America
Airports Council International, North America, which represents commercial airports in the U.S. and Canada, praised the bill's investments in aviation infrastructure, and the hiring of additional CBP officers.
"These new investments will provide significant benefits to the traveling public and businesses all over the country," the council said in a statement. "The airport industry looks forward to working with the Trump Administration on implementing these critical improvements to the aviation system as quickly as possible.'
The council didn't opine on Brand USA's funding cut.
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