How would you utilize $4,000 for travel? One senator wants to make that a reality

Imagine this: you receive $4,000 to spend on travel — every year — until 2022. This is the proposal from one senator, and reports suggest the Trump administration is considering it as well. This initiative, resembling a domestic travel stimulus plan, could be included in a forthcoming economic relief package if U.S. Senator Martha McSally (R-AZ) has her way.

The proposal: $4,000 annually for three years

McSally presented the legislation on June 22 in the Senate to aid the tourism sector, which has faced severe challenges due to the coronavirus pandemic and the resulting economic downturn. The U.S. economy entered a recession in May, and nearly 20 million Americans are currently out of work — many from the tourism industry.

According to her Senate website, McSally's bill, known as the American TRIP Act, "would offer tax credits to Americans who spend on lodging, entertainment, and other travel-related expenses within the United States and its territories. Furthermore, the bill allocates funds for Destination Marketing Organizations (DMOs) to promote the travel and tourism sector nationwide."

McSally states that the unemployment rate in the tourism sector exceeds 35%.

The American TRIP Act aims to provide a $4,000 travel credit for individuals and $8,000 for joint filers (with an additional $500 credit for dependent children) for the years 2020, 2021, and 2022.

As outlined in her proposal:

• The credit is applicable for all travel within the United States and its territories, provided that the travel and related expenses occur at least 50 miles away from the filer's primary residence.
• Eligible expenses for the credit include lodging, transportation, and entertainment.
• For filers with a second home, expenses for live entertainment, food and beverages, and transportation qualify, but costs related to the dwelling (like mortgage, interest, maintenance, etc.) do not qualify.
• The plan allocates $50 million to assist Destination Marketing Organizations (DMOs) in promoting travel and tourism throughout the country.

McSally remarked:

"My legislation aims to enhance domestic travel and revitalize our hotels, entertainment industries, local tourism agencies, and countless businesses. It will also motivate Americans to safely step outside their homes and explore or re-explore Arizona and the remarkable destinations our country has to offer after several challenging months indoors. I am eager to collaborate with both parties in the Senate and House to revive this vital sector of the economy by passing this bill."

A challenging path to approval

The proposal certainly faces criticism. Some perceive it merely as a strategy for McSally to revitalize her reelection campaign. Democrat Mark Kelly is currently leading McSally by 9 points in the race for her Senate seat in Arizona, according to a recent New York Times/Sienna College poll released on June 25.

Ric Edelman, founder of Edelman Financial Engines, commented to Yahoo Finance: "This idea is among the most outlandish I've seen in recent months as an economic stimulus effort. It is tone-deaf and fails to recognize that millions of American families are struggling to pay rent or afford basic necessities like food and medicine."

In May, President Donald Trump proposed a similar initiative, suggesting a tax credit of up to $4,000 for restaurant and travel expenses. During a roundtable with restaurant leaders, he introduced an "Explore America tax credit that Americans could use for domestic travel, including dining out. That's significant."

Travel industry advocates and trade organizations are enthusiastic about the concept and are reportedly collaborating with lawmakers on possible initiatives.

The House has approved a second stimulus package, which is currently under discussion in the Senate, but partisan conflicts may hinder its progress. It remains uncertain whether a travel tax credit will be included.

Another significant issue with McSally's proposal is that it functions as a tax credit, meaning individuals would need to afford the expenses upfront and wait for the reimbursement from their tax refund. This is a substantial request, especially since most American households lack sufficient emergency savings to handle an unexpected $1,000 expense.

Critics also argue that it would promote travel during a time when COVID-19 is still prevalent, with cases and hospitalizations increasing in many regions.

But honestly, where would you choose to go?

For fun, let’s set aside our skepticism and imagine that the bill has been approved and we all have funds for a domestic getaway. How would you spend $4,000 on travel this year?

Personally, there are several states I haven't explored yet. I might consider a stay at Twin Farms in rural Vermont, located about an hour and a half from Burlington. Rooms are said to cost around $1,860 per night, so you could enjoy a weekend there, although they appear to have minimum stay requirements.

I’d love to visit Utah and stay at the Amangiri in Canyon Point, Utah. However, at $3,500 a night, that stimulus money wouldn’t stretch very far. It’s also on senior travel editor Melanie Lieberman's wishlist. I've always wanted to experience the Phoenician resort in Scottsdale, Arizona. Rates start around $473 per night, but you could also use Marriott Bonvoy points for approximately 120,000 points per night (yikes) if you wanted to extend your stay beyond what the government’s check could cover.

Review: Amangiri hotel review

Closer to home, Triple Creek Ranch in Darby, Montana is just about two and a half hours from my family ranch, where I’ve been staying, and reportedly starts at around $1,600 a night. Alternatively, I could drive the same distance to the Paws Up resort in Greenough, Montana, which starts at about $1,700 per night.

I asked several Dinogo employees where they'd like to go first.

Jonathan Eves mentioned, "Monument Valley and Antelope Canyon in Arizona have been on my bucket list for quite some time!" Social media producer Caroline English suggested the charming Mohonk Mountain House in New York's Hudson Valley, which would cost about $2,600 for a three-night stay in September.

Reporter Victoria Walker said she would choose Jackson Hole, Wyoming. Senior aviation editor Ben Mutzabaugh reminded me that there’s an Aman hotel in Jackson Hole as well — with an average nightly rate of $1,065 in September.

Associate Martha Sheridan shared that Denali National Park in Alaska tops her bucket list. Cruise writer Gene Sloan concurred, stating, "As I mentioned in my recent Alaska article, it’ll be emptier than it has been in decades with all the cruisers gone."

Sloan expressed, "I’d definitely explore Denali and then head to southeast Alaska to enjoy some adventures around places like Juneau, avoiding the crowds. I’d hike, bike, whale watch, and sip on Alaskan IPA. After that, if the Alaska Marine Highway is still operational, I’d ride it down to Washington state and then fly home from Seattle."

Mona Kim was also excited about Denali, but if we’re including U.S. territories (which we are), she’d love to visit Guam, stating, "I’ve always wanted to go to Guam just for the experience." She’s also keen on visiting Glacier National Park.

Reporter Chris Dong mentioned he’d like to stay at the newly all-inclusive Alila Ventana in Big Sur, California, which we recently highlighted. Ariana Arghandewal wrote about that Big Sur destination and said she’d spend her stimulus there as well. She also brought up Post Ranch Inn, which is also located in Big Sur.

Reporter Katherine Fan shared, "I’d love to rent a camper with a couple of friends and explore a bunch of national parks!" Richard Kerr mentioned he’d rent an RV and tour Badlands National Park. Social media expert Caitlin Riddell said she’d like to visit "Zion or one of the other major national parks out West." Our video director, Tom Grahsler, added, "I’d ride my motorcycle to Alaska (with a brief detour through Vancouver/BC) and divide my time between camping and staying at resorts."

Credit cards senior editor Benet Wilson expressed, "I’d love to take a road trip from D.C. to San Francisco or L.A. I’d want to see all the major attractions (like Mount Rushmore) and some smaller ones (like the Field of Dreams). I’d take two weeks to do it right!"

Editorial director Laura Motta said, "I’ve long wanted to drive along the Great River Road, from Minneapolis to New Orleans." Meanwhile, director of engineering Mitchell Stoutin shared that he’d bike along California’s Pacific Coast Highway.

Given the enthusiasm from everyone at Dinogo, it seems McSally might be onto something. We’ll have to wait and see if the travel enthusiasts among us get their chance to indulge.