The Weekly Community Newspaper of Associations, CVBs, and Hotels
Cruz-Led Senate Committee
Seeks to Slash Brand USA Funding
Would Reduce Amount by 80%
By Todd McElwee
The Senate Commerce Committee, led by Chairman Ted Cruz, earlier this month proposed substantially cutting Brand USA’s funding from $100 million to $20 million.
U.S. Travel Association is once again rushing to the aid of the nation’s DMO, urging industry members to champion Brand USA’s cause via a variety of channels including contacting legislators, signing on to a sector-wide letter and social media messaging.
“This funding reduction will significantly impact our entire industry, no matter what sector you serve,” Nicole Porter, Vice President, Political Affairs, U.S. Travel Association, said in a letter. “While we know we have asked for your engagement on this issue before, your continued action is now more critical than ever.”
U.S. Travel noted President Trump included $100 million for Brand USA in his budget and that “Congress must do the same to keep the U.S. competitive on the global stage.” It went on to state the travel industry generates $2.9 trillion and supports more than 15 million American jobs.
An industry sign-on letter stressed Brand USA’s economic value, including that it uses no taxpayer dollars, only ESTA fees paid by international visitors from Visa Waiver Program countries plus matching contributions from the private sector. It noted a return of more $24 for every $1 invested.
“Unfortunately, the Commerce Committee provision would reduce the amount of ESTA fee collections provided to Brand USA from up to $100 million annually to only $20 million, undermining its ability to attract visitors and leading to a loss of nearly $2 billion in visitor spending each year, $538 million in federal and local taxes, and impacting more than 25,000 jobs,” the leader reads.
The correspondence highlights how the United States is preparing to host a series of major global events over the next decade, including the Ryder Cup, 2026 FIFA World Cup, America250, and the 2028 Olympic and Paralympic Games and the damage detrimental policies could have.
“With the right policies in place, these events present an economic opportunity that could attract 40 million visitors and drive nearly $100 billion in international visitor spending, helping to rebalance our travel trade deficit while supporting jobs and small businesses in all 50 states,” according to the letter. “In that context, we urge you to support policies in reconciliation that will help us prepare for upcoming global events and make America’s travel industry more competitive over the next decade.”
U.S. Travel has rallied behind Brand USA on a variety of occasions, including before its 2019 reauthorization.
Find more information at travelactionnetwork.com.