"Big Beautiful Bill" Reforms US Travel. But at What Cost?
What happened?
On July 1, 2025, the US Senate passed the Big Beautiful Bill, which contains numerous provisions affecting key travel aspects—investments in modern infrastructure, higher visa fees, funding cuts, and more.
Officially called the One Big Beautiful Bill Act, it is a reconciliation package approximately 900 pages long and combines tax, immigration, defense, travel, health, energy, and other policies.
Here’s how the bill will impact the travel sector.
First, what are the multi-billion-dollar investments for?
The multi-billion-dollar investments are aimed at modernizing aviation infrastructure, strengthening coastal and maritime safety, and expanding border staffing.
$12.5 billion to modernize the FAA’s National Airspace System, covering radar modernization, enhanced telecommunications, upgraded TRACONs (Terminal Radar Approach Control), runway safety tech, and advanced training for air traffic controllers.
The goal is to reduce delays, manage growing flight volumes, and improve safety by replacing decades‑old equipment with modern systems.
$24.6 billion to the US Coast Guard for procurement of new cutters, aircraft, and shore infrastructure. With enhanced capacity, the Coast Guard aims to improve passenger ferry safety, coastal search and rescue, vessel inspection, and port security.
$4.1 billion to hire and train over 5,000 Customs and Border Protection (CBP) officers, enhancing coverage at airports, land borders, and ports. This provision also includes $2 billion for bonuses to retain skilled officers.
Is the new bill making it easier or harder to visit the US?
The bill makes visiting the US harder through higher visa and ESTA fees. At the same time, it streamlines entry for families and upgrades biometric systems, laying the groundwork for expanding the Visa Waiver Program.
New $250 fee for non-immigrant visitor visas, such as tourist, student, work, and exchange. The fee is in addition to existing visa application costs, for example, the standard $185 for tourist visas.
ESTA costs for Visa Waiver Program (VWP) travelers jumped from $21 to $40. Introduced in 2008, ESTA authorizes short-term travel (up to 90 days) to the US for business or tourism under the VWP.
Children under 10 can accompany their Global Entry–enrolled parent or guardian through Global Entry lanes. Previously, each child needed an application, a fee, and an individual interview.
$673 million to upgrade biometric entry‑exit systems across US ports of entry. This will enable the expansion of the Visa Waiver Program (VWP), as reliable exit data is a prerequisite for extending VWP access to more countries.
Budget cuts are making headlines. Do they impact travel?
Yes. Basically, the bill scraps all major climate-focused travel initiatives.
The bill rescinds unspent funds from clean-transport programs, such as FHWA’s Neighborhood Access & Equity grants, low-carbon materials grants, and MARAD’s Clean Ports Grants. These programs are designed to improve sustainable surface mobility and freight logistics.
Unused FAA funds designated for its Fueling Aviation’s Sustainable Transition (FAST) program are rescinded. This program initially carried $46.5 million for low‑emission technology and fuel‑efficiency research, plus $244.5 million for sustainable aviation fuel (SAF) infrastructure.
The bill eliminates the Civil Penalties under Corporate Average Fuel Economy (CAFE) standards, meaning automakers will no longer face fines ($5–$14 per 0.1 mpg shortfall) for failing to meet fuel economy targets.
These penalties encouraged manufacturers to improve fleet efficiency, invest in low-emission technologies, and produce more hybrids or EVs.
Is Brand USA also under cuts?
Brand USA funding is slashed from $100 million to $20 million. As the US national tourism marketing organization, Brand USA relies on federal funds to match private-sector contributions for worldwide promotion.
International cultural exchange programs lost over 80 percent of their funding. These programs foster educational visits and academic partnerships and thus often serve as travel pipelines for students, scholars, artists, and other professionals. The cuts could weaken long‑term tourism ties and global engagement initiatives.
How is the travel sector responding?
The travel industry has expressed a range of reactions to the Big Beautiful Bill.
The national organization representing all components of US travel, USTA, praised the investments in air traffic control modernization and the hiring of additional CBP officers. CEO Geoff Freeman said these measures "will make a meaningful difference in the traveler’s experience."
On the other hand, he emphasized the critical role of Brand USA and criticized the new fees for foreign visitors, saying they “do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices.”
Adam Burke, CEO of the Los Angeles Tourism & Convention Board, pointed out the economic impact of Brand USA's marketing efforts and noted that for every dollar spent, $24 in visitor spending is generated. “I think that’s one of the most important things, is to make sure that Brand USA is reauthorized,” he said.
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