The U.S. travel industry is raising red flags over a Senate proposal to slash Brand USA's federal funding by 80%, warning that the consequences for tourism—especially for smaller cities and underserved markets—could be severe.

The proposed cut, which would reduce Brand USA’s federal match from $100 million to just $20 million, has sparked an unprecedented response from across the sector. “The industry is activated in a way unlike anything I’ve seen before,” said Geoff Freeman, CEO of the U.S. Travel Association, during the IPW 2025 conference held in Chicago. “We’re doing everything in our power to protect Brand USA.”

A Critical Investment in Tourism Promotion

Brand USA, the nation’s official destination marketing organization, was created in 2009 to promote the U.S. abroad and attract international travelers. Since its inception, it has generated $24 in visitor spending for every $1 spent, according to Adam Burke, CEO of the Los Angeles Tourism & Convention Board.

Beyond the return on investment, Freeman underscored the foundational role Brand USA plays in maintaining the U.S. tourism infrastructure: “If you want to bring visitors to the United States, it’s a three-legged stool: visas, customs, and promotion. Without one, it collapses.”

Delayed Funds and Bottlenecks

Compounding the concern is a delay in the release of federal matching funds collected via the ESTA (Electronic System for Travel Authorization) fees. An internal source said Brand USA has not received its matching federal funds since January due to bureaucratic backlogs. While temporary delays are not uncommon during administration transitions, this lag has extended far beyond previous precedents.

Chris Heywood, spokesperson for Brand USA, confirmed the delay, stating, “We are hopeful that the funds will still be processed and sent to Brand USA.”

A Voice for Smaller Destinations

Brand USA’s significance is especially evident for smaller destinations with limited budgets for international marketing. From Pittsburgh to Niagara Falls, representatives stressed that Brand USA is often their only source of global visibility.

“Brand USA is helpful in promoting our city that is often overshadowed,” said Alex Kenzakoski, PR manager at Visit Pittsburgh. “Not even just in terms of budget, but manpower. Having Brand USA actively market us is a game changer.”

Sara Harvey, director of communications at Destination Niagara USA, echoed that sentiment. While Niagara is well-known, she emphasized the need to maintain visibility in competitive markets like the U.K. and Germany, especially as travel sentiment fluctuates.

Fred Dixon, CEO of Brand USA, noted that the majority of the organization’s work centers around these smaller communities. “That’s where we see real impact,” he said. “We help drive international visitors to places that truly benefit from them.”

Big Cities Back the Cause

Larger cities, too, are joining the fight. Kristen Reynolds, CEO of Choose Chicago, said that Brand USA is vital to a national tourism strategy, especially as the U.S. remains the only G20 country without a centralized federal tourism agency.

“We’re already at a disadvantage,” she said, “and Brand USA helps close that gap.” She emphasized how larger destinations rely on Brand USA to drive general interest in the U.S., which then filters down to city-specific promotion.

“Just as smaller destinations rely on big cities like Chicago to amplify the state, we rely on Brand USA to carry the ‘Visit the USA’ message globally,” Reynolds said. “Their role as an umbrella brand is absolutely essential.”

Looking Ahead: Campaigns Continue Amid Uncertainty

Despite the uncertainty, Brand USA is moving forward with plans. At IPW, the organization announced a major international campaign set to launch in August, designed to stimulate inbound travel amid declining visitor numbers.

The stakes are high. The once-$53 billion tourism trade surplus the U.S. enjoyed in 2019 has flipped to a $50 billion deficit, a swing of more than $100 billion. For Freeman, Burke, and others in the industry, defending Brand USA’s budget is about more than numbers—it’s about sustaining millions of jobs, local economies, and the global perception of the United States as a top-tier destination.

“In every sense,” Freeman said, “Brand USA is a rising tide that lifts all boats. We have to support them.”