A new provision in the One Big Beautiful Bill recently enacted by the Trump administration is causing widespread concern in the global tourism industry. Accordingly, international visitors to the US will have to pay a minimum "visa guarantee fee" of $250, expected to take effect from fiscal year 2025 (starting October 1, 2025). This fee, although set at a base of $250, can be adjusted upwards under the authority of the Secretary of Homeland Security.
The new fee will apply to all non-immigrant visa applicants, including tourists, business travelers, and international students. Notably, the fee is only collected when a visa is issued, meaning that denied applications will not be charged. This is a significant addition to the overall cost of the visa. For example, an H-1B worker who already had to pay a $205 filing fee could now pay a total of $455 after the security fee is applied. Furthermore, this fee must be paid in addition to the “Form I-94 fee,” which has been increased from $6 to $24 under the One Big Beautiful Bill.
The US will impose a new visa fee of $250. However, this move has faced a strong reaction from the global tourism industry.
The refund process for this fee is also a controversial issue. To get the money back, visa holders must strictly adhere to conditions, including not working illegally and not overstaying their visa by more than five days. Refunds are issued after the tourist visa expires. However, Steven A. Brown, a partner at the Houston immigration law firm Reddy Neumann Brown PC, advises travelers to treat the fee as non-refundable. “It would be great if you could get a refund, but it’s often difficult to get money back from the government,” Brown explains. He also emphasizes that clients should view the refund as a “bonus” rather than a right.
This fee, called the "Visa Integrity Fee", will be added to the existing visa application fee.
Mr Brown also predicted that the “visa guarantee fee” would hit B visa holders (leisure and business visitors) and international students harder than other groups of visitors.
The US Travel Association is also raising questions about the fee mechanism. A spokesman for the association said: "The bill requires the Secretary of Homeland Security to collect fees, but the agency does not own the process for applying for, issuing, or renewing visas." The lack of clarity about this process is raising concerns about the feasibility of implementation.
The aim of the act is to increase revenue from legal immigration to offset the costs of controlling illegal immigration and enhancing border security.
The Congressional Budget Office (CBO) has made a rather pessimistic prediction about the possibility of refunds. Because many visas are valid for several years, CBO expects “very few people to request refunds.” The agency also said it would take the State Department several years to implement an effective refund process. Based on that, CBO estimates that the provision would increase revenue and reduce the budget deficit by $28.9 billion between 2025 and 2034.
According to the White House, the financial contribution of temporary visa applicants will help reduce the burden on the US security and immigration system.
On the administration's side, a Department of Homeland Security (DHS) spokesperson told CNBC: "President Trump's One Big Beautiful Bill provides the policies and resources needed to restore integrity to our country's immigration system." This suggests the administration's goal is to tighten immigration regulations and increase revenue.
While data shows that most visa holders comply with the conditions of their entry (only about 1-2% of nonimmigrant visitors overstayed their visas between 2016 and 2022), an estimated 42% of the 11 million undocumented immigrants in the US initially entered legally but then overstayed. This suggests that, while uncommon, visa overstays remain a significant factor in illegal immigration, and may be one of the main drivers behind the new fee.
