Brand USA, Destinations International, ASAE recalculate budgets to promote travel in busy 2026 calendar
Budget bills can have wide-ranging consequences in the real world. The One Big Beautiful Bill Act that passed on July 4 spelled out cuts for some hospitality groups, relief for others and hesitancy for more who are waiting for the next shoe to fall.
Marketing Budget Cuts
Destination Marketing Organizations (DMOs), starting with the group tasked with marketing the entire country, were the first to feel the impact. Brand USA’s budget was cut 80%, from $100 million to $20 million in federal matching funds, as part of the budget reconciliation bill. Brand USA President and CEO Fred Dixon said that while he was “disappointed” in the decision, he is “committed to our mission and look forward to opportunities for funding restoration in the future.”
Read More: Destinations International: Meetings Business Is More Important to Cities Than Ever
The cuts come just as the organization is preparing to welcome inbound travel for America250, celebrating the country’s sesquicentennial, FIFA World Cup and the 100th anniversary of Route 66 next year.
“The current reduction will require a significant recalibration of our resources and programming that is still to be determined,” he said in a statement.
Brand USA’s new global tourism campaign, America the Beautiful, invites the world to discover breathtaking landscapes and authentic experiences across the country with curated travel itineraries and compelling storytelling that promotes the American spirit.
According to a recent 2025 DestinationNEXT Futures Study conducted by Destinations International and MMGY NextFactor, 42% of destination marketers worry their funding could be at risk in the next three years, a significant increase from the 37% who said the same thing in 2023.
Cassandra McAuley, managing director with MMGY NextFactor, concluded: “This year’s findings offer a clear call to action: destination leaders must embrace innovation, advocate boldly and redefine success in broader, more inclusive terms.”
The report noted that some destinations have worked to diversify revenue streams with tourism improvement districts, levies and visitor fees, but found that local governments responded by scaling back budgets even more, saying destination organizations should fund themselves. The report emphasized the need for proactive advocacy, not only for tourism broadly, but for the destination organization’s unique role as a public good.
“I think one of the more illogical and stupid things I’ve seen in my career was the House of Representatives looking to defund the majority of the tourism in Florida,” said Destinations International President and CEO Don Welsh. “We have to be hyper-vigilant on behalf of our members to make sure that we provide the resources to help them educate lawmakers about the financial and jobs benefits of travel in communities.”
Read More: Proposed Florida Tourism Tax Bill Could Impact Event Infrastructure
ASAE-Led Coalitions Declare Victories in Tax Bill
Some corners of the hospitality world were relieved by the outcome of budget negotiations. The Community Impact Coalition, launched by ASAE in January, led congressional advocacy on preserving the tax treatment of nonprofit organizations. Two changes that might have been detrimental—taxing nonprofit organizations’ expenses on parking and transportation fringe benefits and taxing royalties generated from a nonprofit’s name and logo—were removed.
Another strategic win: The final bill included the Freedom to Invest in Tomorrow’s Workforce Act, which expands the use of 529 plans to cover post-secondary training and credentialing, such as licenses and nongovernmental certifications. It transforms these college savings plans into career savings plans and creates more viable pathways to career success.
Exhibitions & Conferences Alliance Applauds Competitive Business Tax Rate
Also applauding the benefits of expanding Pell Grants was the Exhibitions & Conferences Alliance (ECA). “It protects vital tax policies and invests in our future workforce by expanding Pell Grants and modernizing 529 savings plans,” said Hervé Sedky, president and CEO of Emerald and chair of the ECA Board of Directors.
ECA also saw “maintaining a competitive business tax rate” and “preserving tax treatment of private capital investments” as positive features of the bill.
