Wednesday, July 9, 2025

The new signed by on , 2025, introduced several changes that have had both positive and negative impacts on the . While some provisions bring good news to , others present challenges to key organizations, such as and the system. Here’s a detailed breakdown of the for travel as a result of the new budget bill.

A significant victory for came in the form of a permanent under of the tax code. Previously, this , which allows many small businesses, including , to deduct , was set to expire at the end of the year. The new budget bill ensures its continuation, providing financial relief to those in the travel industry.

Additionally, the for individuals and couples have been raised to and , respectively. This change will benefit a large portion of , enabling them to reduce their tax burden and better compete with other travel agencies. The had been a strong advocate for this deduction, arguing that its loss would have negatively impacted and conduct business.

, President of , expressed that without this deduction, the could face severe setbacks. “The increased tax burden would significantly affect their business, their ability to employ staff, and could ultimately harm the industry,” Kerby said.

Another positive change in the new involves an update to the , which are traditionally used to save for . Under the new provisions, can now be used for and , including the .

This move is being hailed as a that provides with more flexibility in funding their professional development. , Vice President of Advocacy at , emphasized how this change would strengthen the by allowing professionals to choose training programs that best suit their career goals.

“The ability to use for professional training is a logical progression,” said Klement. “This change will benefit those who are already in the industry and want to enhance their skills.”

While there were in the budget bill, the also experienced a setback. One of the most significant losses came for , the . The organization had its federal matching funds slashed in the new bill, from to just .

, President and CEO of , expressed his disappointment but remained optimistic about the organization’s future. “While we are disappointed with the reduction, remains committed to our mission and looks forward to opportunities for funding restoration in the future,” Dixon said.

Despite the funding cut, remains focused on its goal of promoting to the and generating substantial economic benefits. Since its launch in , the organization has generated an estimated in and returned to the for every dollar spent. However, with the reduction in funding, will need to reorganize its resources in order to continue its mission effectively.

, President and CEO of the , also expressed concern about the funding reduction, calling it “a missed opportunity—especially as the administration seeks to maximize a historic slate of global events on American soil.” Freeman cited major upcoming events, such as and the , which will take place in the U.S. and require robust promotional efforts.

modernization is an area of great importance to the , but unfortunately, the new budget bill does not allocate sufficient funds to meet the goals outlined by .

for a complete overhaul of the had requested approximately for upgrades, with estimates from suggesting that would be necessary to modernize the system. However, the bill allocates just , far below the amount needed.

Duffy’s plan aims to address the , , and improve . Additionally, his proposal includes hiring by offering to attract and retain talent. Without sufficient funding, Duffy’s proposal will be significantly delayed, which could have long-term consequences for and .

Despite the funding shortfall, remain hopeful that further investments will be made in the future to improve the . described the allocation as “a giant step in the right direction,” emphasizing that in will lead to a in the long run.

himself warned that without modernization efforts, the risks of , , and will continue to grow. The lack of sufficient funding could delay the necessary upgrades, further complicating the experience for passengers and causing long-term economic damage.

While the new has brought both victories and setbacks for the , there is still hope that the will help strengthen the sector in the long run. The and the expanded use of for training and certification will undoubtedly provide with the tools they need to succeed and grow.

However, the to and the insufficient funds for are serious challenges that the industry will have to navigate. These cuts could hinder the ability of the to attract international visitors and maintain a safe and efficient .

In the coming months, it will be crucial for industry leaders, such as and the , to continue advocating for increased funding and support. The remains a vital contributor to the U.S. economy, and it’s important that the government recognizes the need for continued investment in the sector’s growth and sustainability.

Travel advisors, in particular, should take heart in the wins in the new budget bill. The permanent tax deduction will provide much-needed relief for small businesses, while the expansion of 529 plans offers more opportunities for professional development. With these positive changes, the future for travel advisors looks bright.

While there are certainly challenges ahead, the travel industry remains resilient. By staying informed and actively participating in the ongoing discussions surrounding these issues, travel advisors and other industry stakeholders can help shape the future of U.S. travel policy.

As the U.S. travel sector moves forward, it will need to strike a balance between addressing the losses while seizing the opportunities presented by the wins in the new budget bill. This will require continued advocacy, investment, and collaboration among all stakeholders in the travel industry.