Updated: Oct 01, 2025
Beginning on September 30, 2025, the United States Department of Homeland Security (DHS) implemented a significant increase in the fee for the Electronic System for Travel Authorization (ESTA), a requirement under the U.S. Visa Waiver Program (VWP). The new fee has risen from the current $21 USD to $40 USD, nearly doubling the cost for many travelers from visa-exempt countries. This change is part of a broader legislative overhaul of U.S. immigration and border-control funding as codified in H.R. 1 (the "One Big Beautiful Bill Act").
This article explores what the increase entails, why it is happening, who is affected, and what travelers and travel industry stakeholders should do in response.
The Electronic System for Travel Authorization (ESTA) is an online pre-travel screening mechanism required for citizens of countries participating in the Visa Waiver Program (VWP). Through ESTA, eligible travelers from VWP countries may enter the U.S. for tourism or business for up to 90 days without obtaining a full visa.
When introduced, the cost to use ESTA was minimal or zero, but over time fees were added to cover administrative and promotional costs. In May 2022, the ESTA fee was increased from $14 USD to $21 USD.
ESTA authorizations remain valid for two years (or until the traveler's passport expires) and permit multiple short stays (up to 90 days each) within that validity period.
The upcoming change is not an isolated adjustment but part of a package of fee reforms that also affect other immigration and entry-related services.
From September 30, 2025 onward:
The ESTA application fee will jump to $40 USD per applicant.
The previous breakdown of $21 comprised a $4 administrative fee and a $17 tourism-promotion fee. Under the new scheme:
The administrative (processing) component will increase (reportedly to $10).
The $17 tourism-promotion component will remain unchanged.
A new Treasury General Fund allocation of $13 is introduced, designated to support U.S. federal funds broadly.
This results in a near 90% increase in total cost per ESTA application.
The CBP systems updates needed to collect the new fee are scheduled to take effect on September 30, 2025.
Applications submitted and paid before that date will continue to be charged the current $21 USD rate.
However, applications initiated but not yet paid after the cutover will incur the $40 USD charge.
If a traveler already holds a valid ESTA, no reapplication is required simply because of the fee change. The existing authorization remains valid until its expiration.
In tandem with the ESTA increase, other immigration and entry-related fees will rise under H.R. 1:
Form I-94 (arrival/departure record for land border entry) will see its total cost increased to $30 USD (existing $6 plus an added $24).
EVUS (Electronic Visa Update System) enrolment, used primarily by citizens of the People's Republic of China holding 10-year B1/B2 visas, will now cost $30 USD where previously it was free (or lower).
A Visa Integrity Fee of $250 USD is also introduced for nonimmigrant visa applicants (those not eligible for VWP), effective October 1, 2025.
These changes are designed to modernize, expand, and fund U.S. border security, travel promotion, and broader immigration enforcement programs.
Higher cost per person: For travelers from VWP countries (such as the United Kingdom, most EU states, Australia, Japan, etc.), the cost to obtain a new ESTA will nearly double.
Greater impact on groups and families: A family of four, for instance, will pay $160 government fee under the new rate instead of $84 under the old rate (for comparable applications).
No reapplication for valid ESTAs: Holders of an active ESTA authorization do not need to reapply - the existing valid period remains in force even after the fee change.
Denial costs: If an ESTA application is denied under the new regime, the applicant is reportedly only charged the processing portion (i.e. the $10), rather than the full $40.
Some voices in the travel and tourism sectors warn that the higher fee may deter occasional or budget-sensitive travelers, particularly families or first-time visitors.
Critics argue that bundling a new fee for the U.S. Treasury into a previously travel-authorization process introduces a "hidden tax" on entry.
However, proponents maintain that the changes are essential to ensure that border control, security, and immigration systems remain sustainable, secure, and properly funded.
The broader legislative package, H.R. 1, reflects a shift toward shifting more of the cost burden onto foreign travelers and visa applicants, particularly via fees tied to enforcement and oversight
Check existing ESTA status - If your existing ESTA remains valid (not yet expired), you do not need to reapply solely because of the fee change.
Budget for the increase in group planning - Travel agents and tour operators should account for the higher per-person cost when quoting U.S. trips starting from late 2025.
Stay updated on visa integrity fee timing -For travelers requiring full visas (i.e. not eligible for VWP), monitor implementation of the $250 Visa Integrity Fee effective October 1, 2025
Monitor further annual adjustments - The H.R. 1 legislation allows for inflation-based annual adjustments, so the $40 figure may be subject to future upward revisions
The hike in the ESTA application fee effective September 30, 2025 marks one of the most significant adjustments in U.S. border entry costs in recent years. For travelers under the Visa Waiver Program, the jump from $21 to $0 presents a substantial new burden - particularly for families and group travel. While existing ESTA holders are unaffected until expiry, those planning U.S. travel in the coming two years should seriously consider applying early to lock in the lower rate. Travel industry stakeholders must revise their cost models accordingly, and prospective travelers should stay alert to additional changes, including the introduction of the $250 Visa Integrity Fee for non-VWP visa applicants.
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