Against a backdrop of major upcoming milestones for U.S. tourism—the 250th anniversary of American independence, the Route 66 Centennial, and the much-anticipated hosting of the 2026 FIFA World Cup and 2028 Summer Olympics—the U.S. Congress and President Donald Trump have enacted sweeping policy changes affecting not just international visitors but the entire travel industry. The recently signed “One Big Beautiful Bill Act” brings considerable shifts, from funding allocations to structural changes in the way America promotes and manages travel.

A Historic Bill with Far-Reaching Consequences

On July 4, 2025, the “One Big Beautiful Bill” was signed into law after a contentious and closely divided vote in Congress. Vice President JD Vance cast the deciding vote in the Senate, reflecting the bill’s polarizing nature. Alongside high-profile tax reforms and changes to healthcare programs, the legislation delivers sweeping cuts across non-defense discretionary spending—most notably, public funding aimed at supporting international tourism and promoting the United States as a premier travel destination.

These legislative changes come as the nation is set to welcome the world for once-in-a-generation events. According to the U.S. Travel Association, travel and tourism generated nearly $2 trillion in economic output in 2023, supporting 9.5 million American jobs. The timing and scale of these reforms could not be more consequential, especially as the sector works to recover from persistent global travel headwinds post-pandemic.

Brand USA Faces Drastic Budget Reductions

Perhaps the most immediate and pronounced impact of the new bill is the severe cutback to Brand USA, America’s public-private tourism marketing organization. Where the agency previously relied on $100 million in federal funds to drive international marketing campaigns, the new law slashes this budget by 80%, reducing support to a mere $20 million. Industry insiders warn this level of funding is insufficient to maintain America’s global competitiveness amid rising promotional budgets in rival destinations such as Canada, the European Union, and Japan.

Fred Dixon, Brand USA’s President and CEO, expressed concern but reaffirmed the organization’s commitment: “The current reduction will require a significant recalibration of our resources and programming, but we remain 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 immediate horizon.” Their 2024 economic impact report found Brand USA’s marketing buoyed 1.6 million international visits, added nearly $13 billion to the U.S. economy, and supported 80,000 domestic jobs.

Rosanna Maietta, CEO of the American Hotel & Lodging Association (AHLA), echoed these concerns. In her words, “As the industry continues its recovery and aims to surpass pre-pandemic levels, international visitors remain essential. Without sufficient funding for Brand USA, we risk losing market share to other countries.”

Promotional Campaigns Adjust to New Reality

Already, tourism boards are shifting tactics. Visit California launched new region-focused outreach to neighboring Canada, recognizing a sharp decline in inbound travel. Brand USA itself has unveiled the “America the Beautiful” campaign, designed to reinforce the nation’s openness and hospitality, leveraging digital channels and public-private partnerships due to tighter budgets.

But according to Dennis Schaal, founding executive editor at Skift, policy trends may overshadow even the most creative outreach. “With the Trump administration pursuing further restrictions—such as the renewed travel ban—no amount of marketing alone can counteract some of the deterrents for international bookings,” he noted.

Airfare Dynamics: Possible Cost Increases in Key Hubs

The new bill reshapes air travel, especially around Washington, D.C. One provision doubles the costs that the Metropolitan Washington Airports Authority pays to lease Ronald Reagan Washington National Airport and Dulles International Airport. Industry analysts caution that these changes may pass directly to consumers, with higher airfares likely for travelers flying through the nation’s capital—particularly when demand spikes during global events.

The U.S. airline sector has largely welcomed investments aimed at improving the flying experience, however. Airlines for America (A4A), the airline industry’s trade group, commended the bill for earmarking $4.75 billion for a long-overdue “overhaul of our nation’s air traffic control system.” By modernizing telecommunications and navigation, these investments are expected to reduce delays, increase safety, and future-proof airport infrastructure for the influx of visitors anticipated in 2026 and 2028.

Ripple Effects for Hotels and Hospitality

For hotel operators, the outlook is complex. Reduced international arrivals—combined with uncertain policy signals—may lead to “feast-or-famine” scenarios. More vacant rooms may force properties to lower prices or, conversely, to raise rates in key cities to offset lost overseas demand. Industry experts also warn of a possible return to pandemic-era belt-tightening, with hospitality staffing levels and guest services, such as daily housekeeping, potentially feeling the squeeze.

On the positive side, some domestic travelers may benefit from more competitive hotel rates in popular markets if international demand remains depressed. Yet the longer-term risk may be a reduction in overall industry capacity, fewer choices for travelers, and a less dynamic hotel sector.

Wider Policy Context: The U.S. Image on the World Stage

The “One Big Beautiful Bill” comes at a crossroads for the global travel market. Many countries—including the U.K., Australia, and EU member states—are ramping up their spending to capture a larger share of the international visitor pie. The World Travel & Tourism Council estimates that in 2024, global tourism spending rebounded to over 90% of pre-pandemic levels, with travelers seeking out destinations that are perceived as welcoming and easy to enter.

By contrast, the United States continues to face criticism over visa backlogs, shifting travel bans, and trade tensions. According to the U.S. Commerce Department, inbound international arrivals in 2023 were still over 15% below 2019 figures, even as Canada, Mexico, and the EU posted full or near-full recoveries.

What Can Travelers Expect Moving Forward?

In the near term, Americans traveling domestically may see changes in pricing and air connectivity, particularly in the D.C. region. International visitors are likely to have less exposure to American travel offerings as overseas marketing wanes, and navigating U.S. entry requirements may become more complicated depending on future policy developments.

For the U.S. travel sector, the challenge is balancing fiscal discipline with the need to remain open, welcoming, and competitive on the world stage. With less than a year to go until the World Cup and three years until the Olympics, stakeholders across the industry—from government and tourism boards, to hotels and airlines—will need to innovate rapidly and advocate forcefully to ensure that the United States makes the most of its unique moment in the international spotlight.