The so-called “one big, beautiful bill” signed into law on July 4 laid out plans for a new $250 visa integrity fee that would be added on top of any existing visa fees for nonimmigrant visas.
Once implemented, visitors from certain countries who are traveling to the United States for tourism, business or other short-term purposes will have to pay the fee upfront with their visa application.
The bill states that this added fee will be refunded after their visit, provided they complied with all the provisions of their visa – such as not working without authorization, not staying in the country past their visa expiration date. In a notice published by the Department of Homeland Security today, the agency said it would not be implementing the visa integrity fee just yet, citing the need for cross-agency coordination before it could be implemented. So far, the official date of implementation is still to be determined.
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Even more uncertainty surrounds the reimbursement process for visitors after they leave. Some nonimmigrant visas remain valid for years, yet the refund can only be processed after the visa expires. There isn’t a refund system in place currently, so one will have to be created to begin processing the integrity fee refunds. For Americans, that uncertainty alone may be enough to stifle the tourism that some states depend on and keep summer travel costs in domestic hotspots like Florida and California lower.
How will the new $250 visa integrity fee impact the economy?
(Image credit: Getty Images)
The new visa integrity fee will apply to countries not in the U.S. Visa Waiver Program. That list includes most of South America, Africa and Asia. It also includes Canada and Mexico, which together accounted for over half of international visitors to the United States in the first quarter of 2025, according to preliminary data from the International Trade Administration (ITA).
That same data shows that the number of visitors from many of those regions is already on the decline in 2025, before the new fee has even gone into effect. Once that extra $250 is tacked onto existing visa fees for these tourists, the U.S. could see numbers fall even further.
Because the new visa integrity fee is not yet in effect, it’s hard to estimate the impact this will have on the national economy. According to one estimate by the World Travel & Tourism Council (WTTC), however, the United States is on track to lose $12.5 billion in tourism dollars from the decline in international visitors.
The states most likely to feel that loss the most, based on the same preliminary ITA data mentioned earlier, are Florida, New York and California. But many other states will also see a notable dip in tourist dollars.
How will the visa integrity fee impact domestic travel?
One potential silver lining for American travelers: cheaper travel costs for destinations within the United States. According to the June Travel Price Index, published by the U.S. Travel Association, while overall June inflation was up, travel-related costs actually fell 0.7% that same month.
Digging deeper, airfare fell 3.5% compared to the same month last year while hotel prices are down 3.6%. Even though gas prices technically rose 1% from May to June, the national average is still 8.2% lower than it was last year.
If the new visa integrity fee or even the uncertainty around its implementation do cause more international visitors to avoid the United States, the decreased demand could keep travel costs lower than usual during the peak summer travel season. So, now’s the time to cross off any domestic travel destinations on your bucket list.
Tips for planning a budget-friendly summer vacation in the US
If you want to take advantage of fewer crowds and potentially lower prices, here are a few tips to maximize your savings while planning the perfect summer road trip or weekend getaway.
- Use a travel rewards card to earn points on any flights, accommodations or spending you do on vacation. That way, this year’s travel can help pay for next year’s adventures, too.
- If you’re driving, compare memberships like Costco, Walmart and Amazon that offer discounts to help you save on gas. You can also plan the perfect route to fit your budget by visiting the least expensive states for road trips.
- Avoid peak travel seasons for your destination to save money on vacation rental properties. While summer is peak season in a lot of places, you can still save by avoiding major holidays or special events.
- If you’re a veteran or currently serving in the military, don’t forget to take advantage of all the summer travel deals reserved exclusively for you. That includes things like free or discounted admissions, discounts on accommodations and more.
- Check the weather. Hurricanes, floods and fires all become more frequent in the summer. If you’re booking too far out in advance to check what the weather will be like during your stay, make sure you have travel insurance that includes “cancel for any reason” coverage so you can get refunded if a storm or fire forces you to change your plans.
