Tourism to the United States has been dropping dramatically since President Donald Trump returned to the Oval Office. Turned off by his policies and in some cases turned away at the border, would-be foreign visitors are increasingly turning their sights to other, more welcoming destinations. And it’s hurting the U.S. economy.
The U.S. was the only country among 184 analyzed in May that the World Travel & Tourism Council projected to see a decline in visitor spending in 2025. While the WTTC estimated a shortfall of $12.5 billion from last year, Forbes suggests that the real shortfall from 2025 expectations is closer to $25 billion based on previous estimates anticipating growth.
New charges levied on visitors may only add another deterrent.
The Republican Party’s massive tax-and-spending legislative package, dubbed the “Big Beautiful Bill,” which Trump signed into law on July 4, includes several provisions adjusting the fees immigrants and visitors will have to pay to enter the U.S.
The most notable of these for tourists is a new “visa integrity fee” of at least $250, to be paid by “any alien issued a nonimmigrant visa at the time of issuance.” According to the bill’s text, the fee cannot be waived or reduced and will be adjusted in future years for inflation.
A State Department spokesperson tells TIME that the visa integrity fee was enacted by Congress “to support the administration’s priorities of strengthening immigration enforcement, deterring visa overstays, and funding border security.” The spokesperson also noted that the Department of Homeland Security is “charged with implementing this fee,” while a separate DHS spokesperson said that the fee “requires cross-agency coordination before implementation.”
Who will be required to pay the visa integrity fee?
Nonimmigrant visa categories include tourists, business travelers, temporary workers, students, and more. According to State Department data, about 1 million nonimmigrant visas have been issued per month so far this year, even with the Trump Administration’s border crackdowns.
Travelers who do not need a visa to enter the U.S., including most citizens of Canada and Bermuda as well as nationals of Visa Waiver Program participating countries, will not need to pay the visa integrity fee.
Will the visa integrity fee be refunded?
According to the bill’s text, the Secretary of Homeland Security “may provide a reimbursement” to the payer of the visa integrity fee after the expiration of the nonimmigrant visa, provided that the visa holder complied with all its conditions and either “has not sought to extend his or her period of admission during such period of validity and departed the United States not later than 5 days after the last day of such period” or “during such period of validity, was granted an extension of such nonimmigrant status or an adjustment to the status of a lawful permanent resident.”
The nonpartisan Congressional Budget Office, however, noted in a May analysis of the bill’s provisions related to immigration fees that it expects “a small number of people would seek reimbursement.” That’s because, the CBO explained, “many nonimmigrant visas are valid for several years; therefore, a large number of nonimmigrants would not be eligible to seek reimbursement until several years after paying the fee.” Not to mention, “the Department of State would need several years to implement a process for providing reimbursements.”
Steven Brown, a partner at Texas-based immigration law firm Reddy Neuman Brown PC, wrote in a July 15 blog post that the provision for a compliance-based refund is “a concept not typically seen in immigration fee structures.” The intent, he explained, “is to incentivize compliance with U.S. immigration laws by treating the $250 as a refundable security deposit—essentially rewarding those who follow the rules.”
However, Brown cautioned that “the law leaves several critical details unresolved,” including who will determine compliance and what documentation will be required to initiate the refund process. “It is important to note that the refund is not automatic. The burden will likely fall on the visa holder to prove compliance and affirmatively request the refund through a future process that DHS has yet to define,” he wrote. Until then, potential payers of the visa integrity fee should treat it “as a non-refundable upfront cost and plan accordingly.”
What other fees are charged?
The visa integrity fee comes on top of fees already charged to travelers to the U.S., including application processing fees that can be $185 or $205 depending on the nonimmigrant visa category.
Even nationals of Visa Waiver Program participating countries must pay Electronic System for Travel Authorization fees of $21, which are nearly doubled by Trump’s bill to $40.
Trump’s bill also raises the Form I-94 fee—for the arrival-departure record required by Customs and Border Protection—from $6 to $24.
The CBO analysis estimated that the new visa integrity fee and increases of the ESTA and Form I-94 fees would together decrease the deficit by more than $40 billion over the next 10 years. Trump’s overall bill, however, has been estimated to add more than $4 trillion to the deficit over the same time period.
The U.S. Travel Association, a nonprofit that represents and advocates for the national travel industry, offered a mixed reaction to the bill earlier this month.
“This legislation is a giant step in the right direction when it comes to improving America’s travel infrastructure and security,” USTA president and CEO Geoff Freeman said in a statement, pointing to investments in air-traffic control modernization, increased customs staffing, biometric entry-exit technology, and planning for major events such as the 2026 FIFA World Cup and 2028 Olympic Games in Los Angeles.
Still, Freeman was critical of funding cuts to Brand USA, the U.S.’s official destination marketing organization, as well as the various hiked charges on tourists.
“Raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation’s largest exports: international travel spending,” Freeman said. “These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices.”
