The “One Big Beautiful Bill”, signed into law on July 4, 2025, introduced a $250 “visa integrity fee” that applies to nearly all non-immigrant visa applicants. The fee is mandatory for individuals seeking tourist, student, exchange, or temporary work visas. Officials state that the measure is intended to ensure compliance with visa conditions, including timely departure from the United States. The law specifies that while the fee is non-waivable, travelers who honor all visa rules may be eligible for a refund upon departure.
Legislative Framework And Applicability
Certain categories of travelers are exempt. Visitors from the 42 Visa Waiver Program (VWP) countries, which include most European Union members, Japan, and Australia, will not be subject to the integrity fee. Likewise, most citizens of Canada and Bermuda are not required to pay. This distinction has already created debate, with some critics arguing that the measure disproportionately affects visitors from emerging economies while exempting wealthier markets.
Additional Increases To Entry Costs
The new integrity fee is not the only cost adjustment facing foreign travelers. The Electronic System for Travel Authorization (ESTA), required for citizens of VWP countries, will see its fee rise from $21 to $40 starting September 30, 2025. The updated structure includes a $10 processing fee and a $30 authorization fee.
In addition, the Form I-94, which documents arrivals and departures at U.S. borders, is set to increase in cost from $6 to $24. When combined with existing visa application fees, some already surpassing $185, the cumulative expenses for foreign travelers may approach $435 or more. These increases come at a time when international travel remains sensitive to costs, especially for families and students planning extended stays.
Industry experts note that the United States now has some of the highest visa-related fees among advanced economies. Comparisons with destinations such as Canada and Australia, where application fees are lower and refund structures more straightforward, could influence travel decisions.
Industry Response And Economic Implications
The travel and tourism industry has raised concerns that the higher costs will deter international visitors. According to the Congressional Budget Office, the integrity fee could generate up to $28.9 billion in revenue by 2034. Other analyses suggest the broader funding package tied to the bill may yield as much as $40 billion over the next decade. However, critics emphasize that the law could also add to the federal deficit, undermining its fiscal justification.
Industry organizations highlight the risk of reduced competitiveness. The U.S. Travel Association has warned that fee increases might discourage middle-class travelers and students, groups that historically contribute significantly to local economies. International events such as the 2026 FIFA World Cup, the 250th anniversary of U.S. independence in 2026, and the 2028 Los Angeles Summer Olympics are expected to bring millions of visitors. Yet, higher entry costs could dampen attendance and spending, potentially reducing the economic benefits these events are projected to deliver.
Airlines, hotels, and hospitality businesses are also closely watching developments. Some executives caution that even a modest decline in inbound travel could lead to billions in lost revenue. In cities heavily reliant on foreign tourism, such as New York, Orlando, and Las Vegas, a decline in visitors could result in job losses and reduced tax income.
Broader Context And Travel Trends
U.S. tourism has already shown signs of weakness. In July 2025, inbound international travel declined by 3.1% compared with the previous year. Analysts also forecast that international spending will drop from $181 billion in 2024 to $169 billion in 2025. This contraction is partly attributed to a strong U.S. dollar, making trips more expensive for foreign visitors, as well as ongoing global economic uncertainty.
At the same time, funding cuts to Brand USA, the nation’s official tourism promotion agency, have reduced marketing capacity abroad. The agency’s budget has fallen from $100 million annually to just $20 million, limiting its ability to promote U.S. destinations in key markets. Observers warn that reducing promotional outreach while simultaneously raising entry fees risks compounding the decline in foreign arrivals.
Tourism is a critical component of the U.S. economy, supporting more than 15 million jobs nationwide and generating $1.3 trillion in spending in 2024. The sector not only supports large corporations but also sustains small businesses in areas ranging from restaurants to retail. Policymakers and business leaders argue that maintaining accessibility for foreign visitors is vital to preserving these economic benefits.