Budget Bill Means ‘Significant Recalibration of Operations’

The $80 million chop to Model USA funding within the funds reconciliation invoice, handed by the U.S. Home of Representatives Thursday, “would require a big recalibration of our sources and programming that’s nonetheless to be decided,” mentioned CEO Fred Dixon in a press release.

Dixon is hoping that the matching funds, which had been diminished to $20 million from the earlier $100 million, can nonetheless finally be restored.

“Whereas we’re upset with the discount from $100 million to $20 million in federal matching funds in Congress’ funds reconciliation invoice, Model USA stays dedicated to our mission and appears ahead to alternatives for funding restoration sooner or later,” he mentioned.

There might nonetheless be a chance to revive the funding as a part of the fiscal yr 2026 appropriations bllls.

Deep Dialogue

“Within the meantime, we stay totally engaged and in deep dialogue with each degree of the administration,” Dixon mentioned. “We take confidence within the President’s request for Model USA’s full funding in FY26 and stay up for Congress taking over these appropriations later this fall.”

Model USA must resolve on the form of its upcoming advertising marketing campaign, America the Lovely, slated for an August launch, and any staffing or different cuts to fulfill the fiscal shortfall.

Exacerbating the monetary squeeze is that Model USA hasn’t obtained any federal matching funds since January, an unusually lengthy dry spell in contrast with previous modifications of presidential administrations.

Dixon mentioned Model USA stays targeted on upcoming worldwide customer attracts, together with America250 and the FIFA World Cup, each in 2026. Worldwide visits to the U.S. have been down for many of 2025, and nonetheless haven’t reached pre-Covid ranges.

The Numbers

Model USA, a public-private partnership, was eligible for as much as $100 million in annual federal matching funds sourced from the Digital System for Journey Authorization charges that worldwide vacationers to the U.S. should pay. The laws adopted by the Home on Thursday lower these matching funds to a most of $20 million.

In its newest annual report, for fiscal yr 2024, The Company for Journey Promotion (Model USA) reported companion contributions of $68.5 million, in-kind contributions totaling practically $63 million, and Journey Promotion Fund proceeds of $119.3 million. The companion contributions principally come from state or native Vacation spot Advertising Organizations, whereas the in-kind contributions are supplied by media firms, airways and on-line journey firms, usually for use in co-op promoting campaigns.

The greenback for greenback matching funds are primarily based on contributions of unrestricted money and in-kind contributions from non-federal sources.

US Journey’s Response

In an X put up Thursday, the U.S. Journey Affiliation quoted its CEO Geoff Freeman as lauding elements of the funds invoice, which President Trump is anticipated to signal Friday, together with measures to enhance U.S. infrastructure and safety.

These included $12.5 billion to improve air visitors management; $4.1 billion to rent and practice 5,000 CBP officers; $673 million to develop biometrics at border entry and exit factors, and monies for planning, safety, and operations surrounding the World Cup in 2026 and Olympics in 2028.

US Journey additionally posted on X: “‘On the similar time,’” Freeman mentioned, “’silly new charges on overseas guests and reductions to Model USA’” threaten worldwide visitation. The invoice cuts Model USA’s funding from as much as $100M yearly to simply $20M—regardless of President Trump’s FY26 funds request for full funding.”

Journey Tech’s View

Because it did when the Senate handed the funds invoice Tuesday, Journey Know-how Affiliation CEO Laura Chadwick in a press release praised a number of parts of the laws that improve home analysis and improvement, in addition to innovation.

“Whereas this invoice offers essential assist for innovation and funding, sadly it additionally cuts funding for Model USA at a time when the U.S. ought to be doubling down on selling tourism, not pulling again,” Chadwick mentioned. “With main international occasions just like the 2026 World Cup, America250, and the 2028 Olympics on the horizon, it is a essential second to strengthen — not weaken — our worldwide advertising efforts.”

Airports Council Worldwide, North America

Airports Council Worldwide, North America, which represents industrial airports within the U.S. and Canada, praised the invoice’s investments in aviation infrastructure, and the hiring of extra CBP officers.

“These new investments will present important advantages to the touring public and companies all around the nation,” the council mentioned in a press release. “The airport business appears ahead to working with the Trump Administration on implementing these essential enhancements to the aviation system as rapidly as potential.”

The council didn’t opine on Model USA’s funding lower.