Brand USA’s Covid-Era Funding Windfall Is Running Thin
Skift Take
A one-time $250 million boost from Congress let Brand USA operate with a nearly fully funded budget after a dramatic cut to federal funding — but that extra funding is about to run dry.
A $250 million injection that propped up Brand USA’s post-Covid spending is starting to wind down, leaving the nation’s tourism marketing arm bracing for the full brunt of last year’s federal funding cuts.
A one-time funding boost from 2022 has helped Brand USA operate with a nearly fully funded budget, despite a subsequent federal funding reduction that erased as much as $80 million from its annual budget. The organization said it plans to spend $158 million in fiscal 2026 and $165 million in fiscal 2027, which kicks off next month — figures roughly in-line with pre-pandemic annual spending outlined in tax filings.
Fiscal 2028 could be a different story.
After a $114.1 million drawdown, Brand USA expects to end September 2027 with cash reserves closer to $51 million, with most of that meant to remain untouched in case of emergency. With fewer dollars flowing in from federal funding and partner contributions, the organization face