US $250 visa fee may cost economy $29 bn in lost tourism spend

Congress and the US tourism industry are at odds over the newly approved $250 “visa integrity fee.” While the Congressional Budget Office (CBO) projects it could generate about $2.7 billion annually, industry officials warn it will deter international visitors and harm the broader economy.

The CBO’s estimate is based only on direct fee collections from roughly 11 million annual applicants. But Tourism Economics, a division of Oxford Economics, found the fee could discourage 5.4% of visitors, translating to nearly one million fewer trips each year. That would cut visitor spending, tax revenue, and jobs in the tourism sector. A CBO spokesperson told Forbes, “By longstanding tradition, the Congressional Budget Office does not incorporate macroeconomic feedback effects into its traditional cost estimates.”

Industry representatives argue that lawmakers overlooked the impact on key markets such as India and Brazil. “Congress made the mistake of assuming that this worldwide visa integrity fee would not have a big impact on visitors from countries like India or Brazil,” Erik Hansen, senior vice president of government relations at the US Travel Association, told Forbes. He noted India is one of the fastest-growing inbound markets, with Indian tourists spending $13.3 billion in the US in 2024. “Applying a $250 fee to a country where travel is growing is mindboggling. It will absolutely deter travel—that’s what our research has found,” Hansen said.


The refund provision attached to the fee is also drawing scrutiny. Under the Big Beautiful Bill, the State Department “may reimburse” the fee after the visa expires, but most visitor visas are valid for 10 years. “The idea that you’re going to give the government money and then wait around 10 years and remember to ask for it back, even if you followed the rules, is just absolutely crazy,” Hansen said. The CBO itself acknowledged that few applicants would claim refunds, and the State Department would need years to create a processing system.

The fee comes as international tourism to the US faces broader headwinds. A June report from the World Travel & Tourism Council (WTTC) projected the US will be the only major market to see a decline in international visitor spending in 2025, with losses estimated at $29 billion. WTTC President Julia Simpson said, “While other nations are rolling out the welcome mat, the US government is putting up the ‘closed’ sign.”

Compounding the challenge, Congress cut funding for Brand USA—the country’s marketing agency—from $100 million to $20 million. Hansen called the decision “another error,” stressing that the program is central to shaping international perceptions of the US as a travel destination.