Tourism agency forced to scale back as federal matching funds drop from $100M to $20M despite upcoming global events and recovery needs
Jul 4, 2025
Brand USA’s federal funding was slashed from $100 million to $20 million in the latest budget bill, forcing the U.S. tourism marketing agency to reassess its plans just weeks ahead of its major “America the Beautiful” campaign launch. While the organization hopes for funding restoration in FY2026, the immediate shortfall poses challenges at a time when international travel to the U.S. remains below pre-pandemic levels.
Key takeaways
- Funding cut: Brand USA’s federal matching funds were reduced from $100M to $20M by Congress, despite President Trump’s FY26 request for full funding.
- Program impact: The agency must rethink upcoming campaigns and staffing due to the sudden budget shortfall.
- Funding gap: No federal funds have been received since January 2025 — the longest gap in years.
- Industry concern: Travel leaders warn the cuts come at the worst time, with global events like the 2026 World Cup and 2028 Olympics approaching.
- Brand USA’s FY2024 funding: $68.5M in partner contributions, $63M in-kind, and $119.3M in promotion funds — previously matched by the government, now capped.
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