Amid growing political backlash and controversies, Pride Toronto faces criticism after failing to demonstrate completion of federally funded projects and encountering backlash over past statements on international conflicts. These issues have been linked to the loss of major corporate sponsorships, as companies feared repercussions from U.S. governmental policies targeting diversity, equity and inclusion programs.

Pride Toronto announced the loss of major sponsors, including Home Depot and Google, with Merck Canada reducing its contribution. The move follows earlier sponsor withdrawals amid a backlash against diversity, equity, and inclusion initiatives. The organization plans to appeal to alternate donors and government sources, reaffirming its commitment to community-driven, inclusive programming.

On May 3, 2025, Pride Toronto confirmed the loss of two high-profile corporate sponsors amid an anti-diversity, equity, and inclusion backlash. This setback highlights how progressive organizations are increasingly being targeted as corporate funding evaporates under authoritarian, anti-DEI pressures.

Amid significant financial setbacks following the withdrawal of three major U.S. sponsors—who distanced themselves due to the Trump administration’s crackdown on DEI programs—Pride Toronto reaffirmed its commitment to promoting LGBTQ+ rights. The executive director, Kojo Modeste, stated that the organization is actively seeking alternative funding and community partnerships to ensure the festival continues its mission.

Pride Toronto announced the loss of three major corporate sponsors, which they attribute to a backlash against diversity, equity, and inclusion (DEI) initiatives in the U.S. following an executive order by President Donald Trump. The withdrawals, coming from companies operating on both sides of the Canada-U.S. border, have forced the organization to cancel one main stage and a signature event, although core elements of the festival such as the parade, dyke march, and trans rally will continue. The incident underlines the challenges faced by DEI-supportive organizations in an increasingly politically charged corporate sponsorship landscape.

Three major sponsors, including Nissan Canada, have withdrawn their support for Toronto’s Pride festival amid a wider corporate retreat from diversity, equity, and inclusion initiatives. Despite these setbacks, Pride Toronto remains committed to delivering an inclusive event and calls on companies to reaffirm their support for LGBTQ+ communities.