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Beginning September 30, 2025, the US Electronic System for Travel Authorisation (ESTA) fee is set to increase from its current $21 to a new rate of $40. This substantial nearly 90% increase is not an isolated policy change but a central component of a sweeping legislative package known as the "One Big Beautiful Bill Act" (H.R.1), which was signed into law on July 4, 2025. This law signals a fundamental shift in US immigration and travel policy, transforming fees on legal, temporary travel into a significant source of government revenue for broader initiatives, including border security and immigration enforcement. This strategic move has sparked fierce criticism from the US travel and tourism industry, with leaders labelling the new fees as a "self-imposed tariff" on the nation's own economy. Industry projections warn of a potential multi-billion dollar loss in visitor spending and a long-term downturn in international tourism. For international travellers and industry professionals, understanding this multifaceted change is critical, particularly as it presents a strategic window of opportunity to secure a two-year travel authorisation at the current, lower rate before the September 30 deadline.

No more low cost: Introducing the $40 ESTA Fee

The Definitive Change: From $21 to $40 on September 30, 2025

On September 30, 2025, a significant change will take place for millions of travellers planning to visit the United States. US Customs and Border Protection (CBP) has confirmed that the fee for the Electronic System for Travel Authorisation (ESTA) will increase from $21 to $40. This new fee will take effect at the start of the new fiscal year for CBP. While some reports cite the effective date as October 1, 2025, this is a minor technical distinction from the September 30 date, as the new rate will apply to any application filed after the close of the current fiscal year. This creates a clear and immediate financial incentive for travellers from Visa Waiver Programme (VWP) countries to complete their ESTA applications before the deadline, as any application submitted prior to September 30 will still be processed at the current $21 rate.

It is important to address a point of confusion that has appeared in some reports, which cite an increase from $4 to $13. This appears to be a misinterpretation of a component of the new fee structure rather than the total cost. The current $21 ESTA fee is composed of two distinct parts: a non-refundable $4 processing fee and a $17 authorisation fee that is only charged upon application approval. A notice published in the Federal Register clarifies that the new fee structure is the sum of three amounts, which include the pre-existing $17 authorisation fee and a new $13 fee, leading to a total of "at least $40". This clarification indicates that sources citing a smaller increase were likely referring to only the new statutory fee component, failing to account for the total, combined charge.

The Legislative Mandate: Deconstructing the "One Big Beautiful Bill Act" (H.R.1)

The fee changes are not arbitrary; they are a direct consequence of federal law H.R.1, officially known as the "One Big Beautiful Bill Act," which was enacted by Congress in early July 2025. This legislation provides the government with the statutory authority to implement these changes. The law also includes provisions for annual adjustments to these fees, based on inflation indexes, beginning in fiscal year 2026. This context is crucial, as it shows that the ESTA fee hike is not an isolated policy decision but a single component of a much broader, legally mandated overhaul of the US immigration and travel financing landscape.

Unpacking the Fee: Understanding the Allocation and Purpose of the Funds

For years, the $17 authorisation portion of the ESTA fee has largely been directed towards funding Brand USA, the official US tourism marketing organisation. The stated purpose of the increased fees in the "One Big Beautiful Bill Act" is to secure the sustainability of tourism promotion. However, a closer examination of the legislation reveals a contradictory provision that plans to drastically cut Brand USA's funding from $100 million to just $20 million annually, even as the fees for its financing are increased. This internal conflict within the same law raises questions about the true purpose of the new fees.

The collected funds are not designated for tourism promotion. Instead, the "One Big Beautiful Bill Act" aims to bolster border security, increase revenue from legal entries, and offset costs associated with managing undocumented immigrants. The ESTA fee has, therefore, been re-purposed from a tourism marketing instrument to a revenue-generating tool for the US Treasury, earmarking funds for broader immigration and border enforcement initiatives as required by law. This analysis suggests that the government is making a clear policy decision to prioritise revenue generation over tourism promotion, a shift that has significant implications for the travel industry.

A Broader Shift in US Immigration Policy

Beyond ESTA: The Full Scope of H.R.1 Fee Increases

The ESTA fee increase is part of a comprehensive overhaul of US immigration and travel fees mandated by H.R.1. The law introduces or increases charges for several other key travel documents, affecting a wide spectrum of legal, temporary visitors. The most significant new charge for non-VWP travellers is the "Visa Integrity Fee" of at least $250, which is to be levied on "any alien issued a nonimmigrant visa" at the time of issuance. This fee is in addition to all existing visa application fees and cannot be waived or reduced. For those arriving at land border ports of entry, the fee for a Form I-94 will increase from $6 to a new total of $30. Lastly, a new $30 fee will be imposed for enrolment in the Electronic Visa Update System (EVUS), the online system used by Chinese B-1/B-2 visa holders.

When examined collectively, these changes reveal a deliberate, systemic strategy to increase government revenue from nearly all forms of legal entry into the United States. As the US travel and tourism industry has noted, this collection of fees and charges acts as a "self-imposed tariff" on international travel spending. By taxing its own "export"—the experience of international travel—the government risks making the United States a less attractive and more expensive destination. The policy shift suggests a willingness to accept a potential drop in visitor numbers in exchange for increased revenue from those who do travel. The following table provides a clear overview of the key changes.

Expert Guidance for the Savvy Traveller

The Pre-Deadline Rush: Why Acting Now Could Save You Money

For travellers planning a trip to the United States under the Visa Waiver Programme, the impending fee increase presents a strategic financial opportunity. An approved ESTA authorisation is valid for a period of two years from the date of approval or until the passport expires, whichever comes first. Any application submitted before the September 30, 2025 deadline will be charged at the current $21 fee, and the resulting authorisation will be valid for the full two-year period, covering travel until at least late September 2027.

By applying early, a single traveller can save $19. For a family of four, the total savings would be $76, representing a significant reduction in travel costs. This makes a pre-deadline application a sound financial and logistical decision, even for those with no immediate travel plans, as it locks in the lower rate for any potential trips in the next two years.

Understanding the Fine Print: Eligibility Changes and Updated Restrictions

The Visa Waiver Programme is not a static list of countries but a dynamic system that reflects ongoing diplomatic and security considerations. While the programme has expanded with the recent addition of Romania as the 43rd participating country, and with Argentina likely to rejoin, there have also been notable changes to eligibility. The validity of ESTA for citizens of Brunei and Hungary was recently reduced from two years to one. Additionally, travellers who have visited certain countries (e.g., Cuba since January 12, 2021) or are also nationals of specific countries (e.g., Iran, Syria) may be ineligible for the VWP and must apply for a visa.

These changes illustrate the VWP's dual role as a strategic tool for both diplomatic engagement and security management. While the expansion of the programme to new countries can be viewed as a diplomatic overture, the reduced validity for other countries and the tightened restrictions demonstrate an emphasis on security controls. Travellers should not assume their eligibility remains constant and are advised to always verify their status and review the latest regulations before making any travel arrangements.

The Global Context—US ESTA vs. The World

A Comparative Review of Global Travel Authorisation Systems

To understand the new ESTA fee, it is essential to benchmark it against similar electronic travel authorisation systems in other major tourist destinations. These systems all serve the purpose of enhancing security by pre-screening travellers while streamlining the entry process for citizens of visa-exempt countries.

1. Canada's eTA: The Canadian Electronic Travel Authorisation costs a mere $7 CAD and is valid for a period of up to five years, allowing for multiple entries.
2. The UK's ETA: The United Kingdom's new Electronic Travel Authorisation costs £16 and is valid for two years, allowing the holder to travel to the UK as many times as they wish.
3. The EU's ETIAS: The European Union's European Travel Information and Authorisation System (ETIAS), which is expected to become operational in late 2026, will cost €20 and is valid for a period of three years, or until the passport expires. The EU has also proposed an exemption for travellers under 18 or over 70 from paying the fee.

The following table provides a clear comparison of these global fees.

The Strategic Implications of Pricing for International Competitiveness

The comparative data reveals that the new US ESTA fee will be significantly more expensive than the fees for similar authorisations in other major global destinations. While the European Union is raising its ETIAS fee to align with global standards, the US, by raising its fee to $40, is now clearly an outlier. This indicates a strategic policy choice to prioritise government revenue over international tourism competitiveness. The US is signalling that it is willing to accept a potential drop in visitor numbers in exchange for increased revenue from those who do choose to travel. The coming years will demonstrate whether this calculated risk will pay off or if the US will find itself at a competitive disadvantage in the global tourism market.

Conclusion: Navigating the Future of US Travel

The impending ESTA fee increase is a key component of a larger policy shift under the "One Big Beautiful Bill Act," which is fundamentally transforming travel fees into a source of government revenue for border security and other national initiatives. This change, along with other new and increased fees, has the potential to negatively impact the US tourism economy by making travel more expensive and potentially deterring international visitors.

The most crucial takeaway for travellers is the strategic opportunity presented by the September 30, 2025 deadline. By applying for an ESTA before this date, a traveller can secure a two-year authorisation at the current $21 price, providing a cost-effective and convenient solution for future trips. The new fees signal a new era for US travel, where the government is prioritising its security and fiscal goals over the concerns of the tourism industry. The coming years will reveal whether this calculated risk results in a long-term decline in international tourism or if travellers will simply absorb the increased costs as a new reality of visiting the United States.