The U.S. is doubling the cost for visitors from close allies and security partners to come to the country. The price of an “ESTA” or Electronic System for Travel Authorization which passengers entering the United States on a visa waiver is going from $21 to $40. And that doesn’t reflect rising costs – the fee is currently $17 to fund travel marketing for the U.S. as a destination, and $4 for processing. The reconciliation bill also cut funding to Brand USA by 80%.
ESTA Fees Going Up For Visitors
The One Big Beautiful Bill Act raises the price of an ESTA from $21 to $40. That’s the fee to be screened and granted permission to travel to the U.S. for business or tourism. The new breakdown for this fee is:
- $10 for administering ESTA
- $13 straight to the general fund (which was scored for the bill as deficit-reducing)
- $17 for the Travel Promotion Fund – but with transfers capped at $20 million and the excess swept to the general fund. The balance becomes a ‘tourism tax’ rather than a marketing fee.
ESTA is required for visitors from 42 countries who can travel to the U.S. without a visa. That includes much of Europe; Australia and New Zealand; Qatar; Japan, Taiwan, South Korea and Singapore among others. (An ESTA isn’t needed for most Canadian or Bermudan visitors, who have separate entry arrangements.)
An ESTA is valid for two years per approval. The fee is a travel tax hike on millions of international tourists. This administration has not been friendly towards foreigners traveling to the United States, however the clear focus of this change is penalizing legal visitation.
While seemingly small relative to the cost of international travel, a family of four will pay $160 (versus $84 previously). Higher entry costs, combined with prolonged visa interview waits and the perception of strict U.S. entry policies, further reduce the appeal of the U.S. as a destination. Overall this change is expected to generate $3.5 billion in general fund revenue over five years.
Travel Marketing Gets Cut 80%
The bill reduces by federal funding for the Corporation for Travel Promotion (Brand USA) from $100 million to $20 million per year, an 80% or $80 million cut, through FY2027.
The mission of this travel promotion group is to market the United States as a travel destination, and it historically matched private sector contributions with federal funds. There is no mandated reduction in private sector contributions to this entity.
Brand USA was created by the Travel Promotion Act of 2009 and federal funding has come from ESTA fees (which are going up!). It was how ESTA proponents could claim that charging visitors to come here promoted visitors coming here. (Normally when you tax something, you get less of it.)
Many state and local tourism boards squander millions and dodge accountability. I’m genuinely not clear on the effectiveness of Brand USA. But it’s pretty clear that promoting more people coming to the United States does not align well with this administration’s priorities.
D.C. Airports Have To Send More Money To The Federal Government
The federal government owns Washington’s Dulles and National airports, and leases them to the Metropolitan Washington Airports Authority.
Currently, the airport authority pays about $7.5 million a year in rent based on a 1987 lease with a $3 million base rate plus inflation adjustments. This is generally considered below-market rent. The airport authority and Department of Transportation just signed a lease extension in 2024 running through 2100 on the same payment terms.
Section 40007 of the One Big Beautiful Bill Act mandates that starting in 2027, MWAA “must pay $15 million per year (adjusted annually for inflation)” to the federal government for the two airports, and the lease must be renegotiated at least every 10 years thereafter. Each renegotiation must ensure the payment is not less than $15 million in 2027 dollars. The bill overrides the lease extension signed last year.
The change was inserted during committee drafting in the Senate by Ted Cruz (R‑TX), chairman of the Senate Commerce, Science & Transportation Committee as one measure to help pay for the bill. Senator Mark Warner (D-VA) offered a floor amendment directing the new lease revenues to airport safety projects, but it failed on a 50‑50 vote. (Directing the spending of the revenue would not help pay for the bill!)
The airports generated $849 million and the Dulles Corridor Enterprise Fund (toll road) generated $206 million in 2023, for $1.055 billion, not including investment gains, passenger facility charge transfers, federal grants, or capital contributions. The agency’s total inflows were over $1.3 billion for 2023.
Currently, lease cost is less than 1% of airport revenue. That will go up to around 1.5% and represents an increased expense of around 35 cents per emplaned passenger. Government-run airports which receive federal grants do not make a profit per se – they invest revenue remaining after funding operations in capital projects. So this change redirects a few million dollars each year from capital investment in the airports to the U.S. Treasury. Of course how well run and how well the airport authority has invested funds in the past has come under significant fire time and again.
National Airport dates to 1941 and Dulles airport to 1962. They were built and run by the Civil Aeronautics Administration and later by the FAA. The Holton Commission was formed in 1984 to explore transfer of the airports to local control. This culminated in the Metropolitan Washington Airports Act of 1986 which authorized the Departmnet of Transportation to lease both airports to the new Metropolitan Washington Airports Authority.
In 1991, the Supreme Court struck down the 9-member Congressional Board of Review that could veto airport authority decisions under separation of powers (Metropolitan Washington Airports Auth. v. Citizens for the Abatement of Aircraft Noise).
(HT: Daniel)
I donno ‘bout y’all, but I sure do feel ‘great’ again… yee… haw…
The bill that keeps on giving.
@drrichard — Socialism for the rich!
At least all the elites on both sides get away with all the pedo-stuff. Sheesh. Yeah, it’s ‘fun’ (and sad) to throw in a ‘he didn’t x himself’ reference these days; though, man, it sure would be nice to see actual justice for the victims…
Anyhoo, tired of all the ‘winning’ yet?
Sure does feel ‘right about everything’ doesn’t it… also, good riddance to Medicaid, Medicare, and eventually Social Security, I guess. Darwin is back, babeee!
If $40 stops someone from visiting we don’t want them here anyway. Such a trivial amount Gary. Quit making mountains out of mile hills.
Awesome news! The bill that favors US citizens over others. Lower taxes for most Americans offset by higher fees for foreign visitors.
I think this is what the majority of Americans voted for.
@AC & @David P — Ah, I see you both hate the economy. Cool. Cool, cool. Enjoy that. Oh, yeah, and sooo much revenue from these fees… good one!
@1990 – we need to cut the government handouts. Shouldn’t have a nanny state. Too many with their hand out. Get to work and make something of yourself. The US was built on individual achievement not handouts. Frankly we give away too much to those that don’t contribute to our great country.
@AC — Couldn’t agree more. Let’s start with all the billions in corporate subsidies. That’s real money. None of this token stuff that is ‘red meat’ for the base, but doesn’t actually solve anything. You wanna fix the deficit and the debt? Stop giving handouts to oil and gas, big agriculture, big pharma, big everything. Start helping the workers and small businesses. Then, let’s talk, son.
@1990 – I love the economy and so does Wall Street. My investment portfolio is up significantly and I have enough experience to hedge and benefit regardless of what it does in the future. I’ve got mine (as do the next couple of generations). Others can do the same with hard work and by becoming more knowledgeable about investments
@AC — You think ‘Wall Street’ is the economy? Sir, this is a Wendy’s… consumers are the economy, and many of His policies are gonna crucify the poor and middle class who actually spend (not merely hoard) their money. ‘Dare to dream a little bigger, darling.’
@1990 – I’m not your damn “son” so take those words out of your mouth. You and your socialist ilk need to just go away. As for business incentives they, like tax treatments, have bottom line economic benefits. Giving money to parasites of society that can’t get by on their own doesn’t. Bring back debtors prisons please
No one really wants these fees and spending cuts, but they’re needed. We’re $37 trillion in debt (about $300,000 per income tax-paying American), and haven’t made a net payment against the owed capital since 2001. The Social Security trust fund runs dry in 2033 or 34, and the Medicare trust fund a year later. Do you think the government will reduce benfits? Nope, they’ll borrow more. What about taxing all those billionaires? If we confiscate every penny owned by our ~1000 US billionaires, the debt will fall 12-14%. They’re just aren’t enough wealthy folks to get the job done by taxation, it would require increased middle class taxes and fees and reduced lower income class benefits. We’re in a deep and ugly hole. Getting out will be painful. Not getting out will be worse.
@1990,,, you forgot the leaches on welfare, ssi, wic, rent checks, utility checks, food stamps. Trust me, I worked in a business that dealt with this stuff. Fraud is rampant as it is with the VA handing out disabilty checks to healthy people.
@AC — Alright, papa. Remember, this is a roast. Call me whatever names you wish; I’m kinda ‘into it.’ As for the history of bankruptcy, indentured servitude and the rest, you know nothing, sir. A day in the life of that Dickensian world would wreck you. Be wary if he actually goes after the independence of the Fed, because messing with Central Banks is how currencies fail.
David P: regardless of how small the increased fees are in reality, the perception is that the USA is punishing visitors – with fees, longer waits in line, possible jail time for no reason, being denied entry in the US – is going to reduce tourism to the US.
The majority of Americans voted for a reduction in government spending and waste. We didn’t vote for a reduction in our ‘growing’ economy,
1990 – Wall Street is my economy. Retired after 49 years as an executive with a nice portfolio that I manage. All I care about is me and mine. The poor and others are their own issue, not mine
What is the payback on tourism marketing r Brand USA? I wonder if anyone ever asked.
$40 for ESTA every 2 years is chicken feed.
@Larry David Bradley — You had me at ‘Larry David.’ *Curb Your Enthusiasm tuba theme plays* If you think the petty theft is the problem, then please continue to ignore the white collar crimes, like PPP abuse, insider trading, offshoring, etc. Again, that’s where the big money is, and we’ve given up on enforcement. Instead, we get the relative distraction of ‘look over here at these brown folks!’ Please, by all means, let’s go enforce our laws, again. All of them. Including anti-trust. Teddy Roosevelt was onto something. Regulatory capture is another farce!
@AC — My dear fellow capitalist, I, too, have appreciated my personal good fortunes, and do also enjoy a reasonable return on investment; yet, I also breathe the same air as the rest of us mere mortals, and prefer a bottom-up, stronger ‘floor,’ as opposed to a ‘top-down,’ ‘let them eat cake,’ approach to society. Recall the healthcare executive’s fate. Let’s treat our people better, so they don’t come to our mansions for a ‘visit.’ Unions were the compromise during the last Gilded Age; I’d like to skip the vigilante part, and go to a better balance of the equities. Or, just ignore all that history nonsense. Psh, it’s not like it ever repeats in any way… the Roman Empire last FOREVER!
@ Gary — Gotta fund the Orange Grift somehow!
I’m enjoying the ‘spice’ here. Now, where’s doctor @Jake? He usually has a biting remark, like, ‘take your meds!’ Or, @Mike P, to espouse the ‘merits’ of anarcho-capitalist libertarianism, along with a quote from Twain (just, please, enough with that Uncle Tom Sowell; we know, he’s nearly 100!)
@Mike Hunt — We await your socially moderate, economically conservative viewpoint! Or, did you say something naughty, and end up in ‘automatic moderation.’ It gets us all sometimes…
I don’t ever want to hear another Republican talk about fiscal responsibility. They are hypocrites, with neither honor nor patriotism.
I hope MWAA sues. Congress can’t just override an executed lease.
@mark f
Given that the situation is a dire as you say, I assume you will agree the tax cuts are not appropriate at this time, correct? It should be an all hands on deck situation. The fact that 100% tax on billionaires won’t solve the deficit is not an argument to give them tax cuts.
@AC:
When the revolution happens, you, and people like you will be the first ones to find themselves standing between a wall and a squad of you-know-what.
@L737 — I believe it was the great poet Philip J. Fry, who once said: “True, but someday I might be rich. And then people like me better watch their step.”
@Thumper — No, no.. don’t you realize… @AC is ‘one of the good ones.’ Also, I’ve been told that ‘the revolution will not be televised’; probably live-streamed, actually.
All taxpayers paid to increase tourism so las vegas could hike up fees. No american taxes should go to increase tourism so las vegas and the like could just increase prices. It was simply dumb to find it in the beginning.
I recognize that the ESTA fee increase is just a bit more than nominal. But it’s another reason for Europeans to not come and spend their money here. And there is an economic impact to that.
My relatives are pretty much saying “There’s no way I’m coming to visit you” due to border hassles and our tariff policy. ESTA is just icing on this cake.
I suspect that the cost for ETIAS will be higher as a result as well.
I strongly suspect that the total economic impacts of our “new” legal visitation polices negate whatever new tax revenues will be generated by the fees.
what will that big beautiful turd think of next? Does the fee only apply to people of color?
@AC — I got another one: “My stocks have never been higher!” –Some guy in September 1928.
Drrichard says:
Sort of like a suppository.
I understand the political necessity of packaging together multiple items into legislation, so each special interest knows they’re getting their tit for the tat. But, as we see, this massive one has so many “huh?” features. I’m looking to get a new New Zealand eta. It’s only NZ$17 to apply, but the NZ$100 mandatory IVL fee makes it US$70 for two years. I’m OK with that.
But, frankly, I’d feel better if the fee schedule was made in consultation with travel experts and economists, not lawyers in Congress throwing darts.
It’s important to note that the ESTA is worthless today; it offers no security whatsoever.
I know of at least two cases where ESTAs were canceled shortly before the flight to the US. In both cases, the travelers lost everything: hotel reservations, Disney World tickets, etc.
In both cases, the individuals were employed, had previously traveled to the US, and had no interest in remaining in the US illegally.
Getting a physical visa? At least a year of waiting.
You’d have to be a masochist to travel to the US as a tourist today, when there are so many beautiful places in the world.
AC says:
@1990 – I’m not your damn “son” so take those words out of your mouth. You and your socialist ilk need to just go away. As for business incentives they, like tax treatments, have bottom line economic benefits. Giving money to parasites of society that can’t get by on their own doesn’t. Bring back debtors prisons please
It must be an awful feeling when life finally passes you by. And all you can do is to spray out your hurt feelings. In another month, people will not even remember your spittle filled rants. Or you.
@AlanZ, you hit the nail on the head. @AC is an ingrate who built his “wealth” on exploitation and he is totally bereft of empathy. God invented cancer so AC could die from it.
Meanwhile it seems 1990 has his head on straight and is bound for a long healthy life. Hopefully long enough for him to disabuse himself of the anti-China propaganda he’s been taught.
@Thumper – I am fine in my gated community with full time security plus assault rifles. If someone wants to play “The Purge” with me I’d love it
@AlanZ – I could care less who remembers me outside of immediate family. I’ve set up generational wealth for them and that is all that matters
@1990 – not worried about a depression stock crash. Experience enough to hedge, set stop losses and work multiple angles w stocks/options/currencies/commodities. Trust me ai will be fine regardless of what happens.
“I got another one: ‘My stocks have never been higher!’ –Some guy in September 1928.”
I assume you meant 1929 for more dramatic effect, but typos happen. Good news is for the smart investor in that era who, if like AC, had followed a long-term investment strategy, they only “lost” (i.e., had a paper loss) on the run up in the last 4-5 years before the crash. Those who had been in market since WWI, had a reasonable big picture return as regular investors. Who lost big? Gamblers pretending to be investors.
Sadly, Hoover did some stupid things. Coolidge had been smarter; he ignored the big downturn during his administration, and it “went away.” Sadly Roosevelt repeated and intensified the mistakes of Hoover, and it wasn’t until WWII hit, 10 years in, that recovery was achieved. (And our future was held back by FDR-era stupidities that carried on.)
‘interviews’? Do the travelers have to get the card BEFORE they board the plane? For many/most international visitors there’s no deciding one morning you want to visit Walla Walla, buying a ticket via internet, heading to the Airport?
Well, getting through Customs just got a lot faster…..
@Erect — CCP is a dictatorship; Taiwan remains a free, independent country.
@AC — What’s this about socialism? You must mean public roads, fire departments, and the military. And, is it those ‘free buses’ the Ugandan-American mayoral candidate is promising? Be very afraid, dawg.
@This comes to mind — Ah, finally, a student of history! Yes, HODL. Always. Line goes up!
Can’t we all just get along and hate on American Airlines?
@AlanZ — I think there will be a breaking point soon enough; too many broken promises.
The social contract, the ‘American Dream,’ really does feel ‘dead’ these days. Hard work, merit, etc. is mot getting people ahead so much anymore.
Ironically, #45/47 is talented at diagnosing this problem, but then He and his people provide the wrong solution (demagoguery, vilify ‘brown’ people, for instance.)
As I’ve said many times, while the ‘culture’ war is ‘fun’ at times, this has always been a ‘class’ war, and unless you’ve got a spare $100 million lying around, we’re all mere peasants here.
As for folks like @AC, they are jot just willfully ignorant, but seem to enjoy others suffering, which is kinda the worst of the worst.
@ Erect — Never fear, scum die soon enough.
Oof, the autocorrect these days… thank goodness this isn’t too serious a place. Misspell a few things on your ESTA application and ‘that’s a paddlin’ (Jasper from The Simpsons; @L737, you get that one?)
@Gene — Geez, come on, @Erect always goes too far. We wish @AC well. (Kill ‘em with kindness!) ‘Bless your heart,’ as they say in the South.
@ 1990 — I didn’t single anyone out…
The trump admin and republicans are doing everything they can to destroy the country. Just came back from Europe and the hate for what US has become is everywhere. Even in Greece and Iceland. The white house is running ahead with the “america last” mission
@Gene — Finally, an egalitarian!