Toronto to boost Pride Toronto funds by 26% after corporate sponsors pull support

The City of Toronto will increase funding for Pride Toronto this year by 26 per cent after the festival said it lost three corporate sponsors in a move it linked to backlash against diversity, equity and inclusion (DEI) programs in the U.S. 

The city will be providing funds to support a record 64 festivals this summer, including Pride Toronto, Mayor Olivia Chow said. By 2027, she said the city will boost funds for Pride Toronto by 62 per cent. 

"As the United States pulls away from recognizing the value of diversity and inclusion, here in Toronto, we know that diversity is our strength," Chow said at an announcement Tuesday. 

"We're not pulling away, we're not going anywhere. In fact, we're doubling our efforts." 

In total, the city will hand out more than $2.5 million to festival organizers in 2025, according to a city news release. Compared to last year, it is supporting 15 more festivals and providing a 33 per cent increase in funds. 

"This is a major job creation effort," Chow said. "How many people are employed along the street as people are buying and shopping?" 

City funding will allow Pride Toronto to reverse cuts

Several Toronto festivals have been scaling back due to rising costs, lack of funding and changing audience habits as they continue to recover from the COVID-19 pandemic. 

In February, Pride Toronto said it would need to seek other funds after three corporate sponsors pulled out.

WATCH | A number of festivals in the city scaled back or were cancelled last year:

Toronto festivals scaling back, getting cancelled, due to financial troubles

1 year ago

Duration 2:20

Toronto's iconic festivals are having a hard time bouncing back from the pandemic, with many pointing to funding and attendance as their biggest challenges. As CBC's Talia Ricci reports, organizers are hoping for a brighter future after another year of scaling back and in some cases, cancelling festivals altogether.

At the time, Kojo Modeste, the festival's executive director, said the decision was connected to an executive order issued by U.S. President Donald Trump to end all DEI programs, mandates, policies and activities within the federal government. 

Speaking at Tuesday's announcement, Lezlie Lee Kam, co-chair of Pride Toronto, said it lost $300,000 after the sponsors pulled out, forcing the organization to downsize its annual event. With the city's new funding, the festival now plans to reverse those cuts, she said. 

She called on the provincial and federal government "to step up and show your generosity and your commitment to us, the same way the City of Toronto has had the courage and bravery to do." 

Kam could not confirm how much money Pride Toronto is receiving from the city this year. 

Taste of the Danforth may happen this year

The mayor also provided an update on the Taste of the Danforth, an iconic Greektown street festival that was cancelled in 2024, saying it may "come back in a different form." 

"They're looking at having it in a park … they want to come together and do something different," Chow said. 

She said the GreekTown on the Danforth BIA is still finalizing details and she would leave it to the association to make announcements about the festival this year.