Last week, inking President Donald Trump’s $2 trillion megabill. This new law places a $250 charge on international travelers seeking non-immigrant visas to visit the United States. From tax cuts to spending packages and immigration policy, this legislation has made waves. It provides the Department of Homeland Security (DHS) with the authority to set and apply fees to travelers. This fee takes effect in fiscal year 2025, which begins on October 1, 2024, and ends on September 30, 2025. Experts are warning that it is likely to have a disastrous effect on international tourism.
The megabill adds a new “visa integrity fee.” This fee is non-refundable and non-negotiable and applies to all applicants seeking non-immigrant visas. For travelers, it’s crucial to follow their visa requirements, like not overstaying or working illegally. If so, they would become eligible for reimbursement after their visa period ends. Very importantly, nationals of more than 40 countries now in the Visa Waiver Program will be excluded from having to pay this new fee.
Implications for Travelers
That $250 fee is a huge barrier. It represents an astonishing 144% increase in the initial financial burden to enter the United States. Erik Hansen, U.S. Travel’s senior vice president of government relations affairs, expressed that “cost and visa wait times” are “among the top deterrents” for potential travelers. Those changes are likely to make travel planning even more difficult for the millions of people who might visit the U.S.
Many experts have expressed their outrage over the new user fee. They claim that it does not address a larger set of infrastructure issues. Extended wait times for visa interviews still pose an urgent problem for would-be travelers. Hansen acknowledged that the new visa integrity fee is making it more expensive to come visit the U.S. He stressed above all that it doesn’t cut down on interview wait times.
Impact on Major Events
It’s the timing for this fee that is even more troubling. Big things like the World Cup and Olympics are right on the horizon. These forums typically attract thousands of foreign attendees. As per-country travel limitations have persisted, experts have remained concerned that the new fee may still discourage many from traveling to the U.S.
Transportation Secretary Elaine Chao announced her intent to withdraw the proposal back in July. As he explained, “The wise investments in the traveler experience render silly new taxes on foreign arrivals and cuts to Brand USA, America’s advertising agency, all the more galling. This feeling demonstrates an increasing concern over how new fiscal requirements might impact the tourism income and visitor experience.
Future Adjustments
The DHS still has the option to raise the integrity fee in future years, tied to inflation. This new wrinkle will be even more troublesome for international travelers looking to come to the U.S. in coming fiscal years. As international travel slowly returns amid the pandemic, these price factors will be critical in determining where visitors choose to go.
