The mega-brands pulling back millions from Pride events as DEI continues to crumble
A host of major companies is pulling financial support from this year's Pride events as once-popular DEI initiatives continue to tank under the Trump administration.
Credit card giant Mastercard is pulling it corporate sponsorship of the New York City Pride March as many Diversity, Equity and Inclusion measures have crumbled during President Trump's second term.
Mastercard has supported Heritage of Pride, the nonprofit that organizes the annual NYC parade as well as other Pride events, for around a decade, the Wall Street Journal reported.
It isn't the only NYC Pride sponsor not returning this year.
PepsiCo, Nissan, Citi, Comcast and PricewaterhouseCoopers have also pulled out as sponsors of NYC Pride.
Financial reasons, including looming tariff threats, have been cited by companies like Nissan for the decision as Trump's war on DEI has highlighted his first few months in office.
John Paul Rollert, an adjunct associate professor at the University of Chicago Booth School of Business, told the New York Times that many organizations fear 'that they will be subject to heightened scrutiny and perhaps even reprisal by the current administration.'
'Supporting a Pride event is not particularly expensive undertaking. This is a fear of a potential reputational harm that might come from the administration turning its spotlight on them,' he added.
Beer maker Anheuser-Busch InBev pulled support for Pride events in St. Louis while booze company Diageo dropped out of events in San Francisco, though Diageo said it would sponsor U.S. Pride events through its Smirnoff brand, WSJ reported.
Eve Keller, co-president of USA Prides, told NBC News that members across the country have reported a significant reduction in sponsorship funds this year.
Some rural Pride events, Keller said, are experiencing a 70 to 90 percent reduction in funds compared to an average year.
Support for Pride events soared in 2015 following the Supreme Court's ruling in favor of same-sex marriage.
Companies supporting Pride events have fueled accusations of only showing support to the community when it is financially advantageous - dubbed 'pinkwashing' or 'rainbow capitalism.'
This year, 39 percent of executives plan to decrease their recognition of Pride, according to a survey by Gravity Research, WSJ reported.
Trump's executive order against DEI policies and programs has now seemingly further hindered Pride events.
Trump declared DEI initiatives to be 'illegal and immoral,' barring the government from funding them. He also prohibited federal funds from promoting 'gender ideology.'
In an attempt to avoid the administration's wrath, many companies have scaled back their DEI practices
Suzanne Ford, the executive director of San Francisco Pride, said companies backing away haven't been entirely certain on their reasoning.
'Obviously, the Trump administration and the war on diversity, equity and inclusion, I think, has affected some corporations' decisions about who they sponsor,' she told Business Insider.
'Some corporations are hedging their bets, not trying to inflame one side or the other and trying to just stay out of the fray.'
In January, Target received backlash for axing its DEI program and was subsequently banned from the Minneapolis Pride parade.
The retailer has long supported Twin Cities Pride, but after news broke of the company deciding to cut back on its policies, the pride organization's executive director banished the store and its $55,000 in funding.
The organization took to social media to share that the company's decision - announced in a newsletter in late January - was 'the breaking point,' even though Target was expected to sponsor the parade again this year.
The retail giant announced the drastic change just one week after Trump initiated orders to sever diversity, equity and inclusion policies across the nation.
'Throughout 2025, we'll be accelerating action in key areas and implementing changes with the goal of driving growth and staying in step with the evolving external landscape,' Target said.
As part of that change, the company said it planned to end its three-year DEI goals, conclude its Racial Equity Action and Change (REAC) initiatives, halt 'external diversity-focused surveys,' and rename its 'Superior Diversity' outreach to 'Supplier Engagement.'
Twin Cities Pride officially announced the 'bold decision' to axe the retailer on social media, stating that even though Target's absence at the parade 'means losing $50,000 in funding,' it had to be done.
The group urged the community to instead donate to Twin Cities Pride to help 'fill the gap' from the money lost.
'Your donation will ensure we can continue providing year-round programming, celebrating Pride with authenticity, and creating safe, inclusive spaces for all,' the post read.
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