Introduction
On September 30, 2025, the U.S. government implemented a substantial increase to the fee charged for the Electronic System for Travel Authorization (ESTA). The cost has gone from $21 to $40 per application, nearly doubling the expense for millions of visitors entering the United States each year under the Visa Waiver Program (VWP).
This move is part of a broader overhaul of immigration-related fees under the One Big Beautiful Bill Act (H.R. 1), signed into law earlier in 2025. Alongside ESTA, other processes such as the Electronic Visa Update System (EVUS) and the Form I-94 at land borders will also see fee increases, while a new $250 “Visa Integrity Fee” will affect non-VWP visa applicants beginning in October 2025.
For travelers, airlines, and the global tourism industry, the ESTA increase represents more than a modest administrative adjustment. It reflects shifting U.S. priorities around border security, cost-sharing, and federal funding. Understanding what is changing and how to prepare is essential for anyone planning to travel to the United States after September 2025.
ESTA in Context: A Brief History
Origins of the Visa Waiver Program
The Visa Waiver Program (VWP) was introduced in 1986 as a way to promote tourism and business by allowing nationals of designated low-risk countries to enter the U.S. without obtaining a full visa. Today, dozens of countries participate, including most European Union nations, the United Kingdom, Japan, South Korea, Australia, and New Zealand.
Launch of ESTA
In 2008, the U.S. launched the Electronic System for Travel Authorization (ESTA) to enhance pre-screening of travelers before they boarded flights bound for the U.S. Rather than applying for a paper visa, travelers submit an online application providing biographical details, passport data, and security-related information. U.S. Customs and Border Protection (CBP) uses the system to check against watchlists and risk databases.
Originally, ESTA applications were free of charge. In 2010, Congress approved a $14 fee, split between a $10 contribution to the “Travel Promotion Fund” (to finance Brand USA, the U.S. tourism marketing agency) and a $4 administrative charge. In 2022, the total was raised to $21, still among the lowest government travel authorization fees worldwide.
The increase to $40 marks the largest single rise since ESTA’s inception.
Details of the 2025 Fee Increase
The New Breakdown
Under the revised fee structure, effective September 30, 2025:
- $10: Processing and administrative cost (up from $4)
- $17: Travel promotion contribution (unchanged)
- $13: New Treasury allocation, directed to the U.S. general fund
This results in a total charge of $40 for each ESTA application.
Timing and Transition Rules
- Applications submitted and paid before September 30, 2025 will remain at the current $21 rate.
- Applications unpaid as of September 30 will be subject to the $40 fee, even if initiated earlier.
- Existing valid ESTAs are not affected. An ESTA remains valid for two years (or until passport expiry, whichever is sooner) and can be used for multiple entries.
Related Fee Increases
- Form I-94 at land borders: Will increase to $30 (from $6).
- EVUS enrolment (for PRC passport holders with 10-year B1/B2 visas): Will cost $30.
- Visa Integrity Fee: A new $250 fee applies to most nonimmigrant visa applicants beginning October 1, 2025.
Why the Change? Policy and Legislative Background
H.R. 1 and Immigration Funding Reform
The fee hikes stem from H.R. 1, nicknamed the “One Big Beautiful Bill Act,” a sweeping piece of legislation passed in 2025. The Act included reforms across government agencies, including provisions to increase revenues from travel authorizations and visas.
According to the Department of Homeland Security (DHS) and CBP, the goals are threefold:
- Sustain border operations by ensuring the cost of screening and processing travelers is adequately covered.
- Support travel promotion by maintaining Brand USA’s funding through the $17 tourism levy.
- Generate additional federal revenue, via the new $13 Treasury allocation, to offset immigration-related enforcement and security costs.
A Cost-Sharing Model
The underlying philosophy is to shift more of the costs of immigration enforcement and border management from U.S. taxpayers to foreign nationals who benefit from travel to the U.S. Critics argue this effectively taxes international visitors, while supporters contend it is a fair distribution of costs.
Who Will Feel the Impact?
Tourists and Families
Casual travelers will notice the difference most sharply. A family of five planning a vacation will now spend $200 on ESTA applications, compared to $105 previously. While small compared to airfare and hotel costs, the increase may discourage some budget-sensitive travelers or those comparing destinations.
Business Travelers
Corporate travel departments may face higher compliance costs, especially if they frequently rotate staff on short U.S. business trips. However, ESTA’s two-year validity helps mitigate the impact since repeat visits require no additional fee until expiration.
Students and Researchers
While most students require F-1 or J-1 visas (and will thus face the new $250 Visa Integrity Fee), some short-term academic visitors from VWP countries rely on ESTA. The fee hike adds another expense to already tight education budgets.
Airlines and the Travel Industry
Airlines, tour operators, and travel agents must prepare to explain the new fee to customers. They may also face increased customer service inquiries, especially around the transition period. Brand USA has expressed confidence that the extra funds will allow it to continue promoting the United States as a top destination, but some industry stakeholders worry the higher cost may deter marginal visitors.
International Reaction
Europe’s Response
European travelers account for the majority of ESTA applications. EU officials have previously criticized ESTA fees, especially the tourism levy, as an indirect tax on European citizens. Some suggest the latest increase could fuel calls for reciprocal measures under the ETIAS system (the EU’s new travel authorization, set at €7).
Asia-Pacific Concerns
For countries such as Japan, South Korea, and Australia, which have high volumes of travel to the U.S., the increase may not deter travel but could shift some discretionary trips toward destinations with lower entry costs.
Travel Advocacy Groups
Global travel associations have expressed concern that the new Treasury allocation, unrelated to processing or tourism promotion, undermines the original intent of ESTA funding. They argue that if fees are used as a general revenue tool, they risk damaging the perception of the U.S. as a welcoming destination.
Practical Guidance for Travelers
Verify ESTA Status
Travelers with an existing ESTA should check its validity. If still active, no new application is required until expiration, even after the new fee takes effect.
Budgeting for Families and Groups
Families and group travelers should account for the higher cumulative cost when planning travel budgets. Travel agents should highlight this change in quotes and itineraries.
Monitor Future Adjustments
H.R. 1 authorizes annual inflationary increases in these fees. ESTA could rise again in 2026 or later, meaning the $40 rate may not remain static.
Broader Implications
The ESTA fee increase is part of a larger trend: shifting immigration-related costs toward applicants and travelers rather than taxpayers. From visa processing fees to green card applications, U.S. immigration costs have steadily risen over the past decade.
While the U.S. remains one of the world’s most popular destinations, higher costs may influence travel decisions at the margins. In a competitive global tourism market, countries often weigh the balance between security, revenue, and visitor friendliness.
The long-term question is whether the added funds for border security and the U.S. Treasury will outweigh potential losses from reduced visitor numbers.
Conclusion
The increase of the ESTA fee to $40 on September 30, 2025 marks a significant development for international travelers and the travel industry. Although not exorbitant compared to overall travel costs, the nearly 90% rise signals a deliberate policy shift: foreign visitors are expected to shoulder more of the burden of funding U.S. immigration and border security operations.
Travelers can mitigate the impact by applying early, verifying existing authorizations, and planning budgets accordingly. Meanwhile, governments, airlines, and travel advocacy groups will continue to debate the fairness and effectiveness of using entry fees as a revenue source.
Ultimately, the change reflects the tension at the heart of modern border policy: balancing security and funding needs with the imperative to keep the United States accessible, competitive, and welcoming to the millions who seek to visit its shores.