Every June, national brands celebrate Pride Month with colorful displays of solidarity.
This year, expect fewer rainbow logos and less corporate revelry.
Despite a long track record of supporting the nation's lesbian, gay, bisexual, transgender and queer population, corporations are shrinking budgets and downplaying Pride marketing as President Donald Trump's administration cracks down on diversity, equity and inclusion programs and transgender rights emerges as a culture-war flashpoint.
"Normally this time of year, our company and others are always working on Pride campaigns. Last year there was almost nothing. This year is the same," said Matt Skallerud, president of Pink Media, which helps brands reach the LGBTQ+ demographic. "I think it's going to be a ghost town when it comes to Pride promotions at the start of June."
About 2 in 5 corporations are decreasing recognition of Pride Month as executives bow to pressure from the Trump administration, according to Gravity Research, which advises companies on social, political and reputational risks.
Large corporate donors and sponsors are also pulling their support of Pride parades across the country.
One financial executive told Gravity Research part of the backtracking strategy involves being less visible on social media "to help minimize public visibility that could trigger attention."
The attention they want to avoid? The "go woke go broke" backlash against Target and Bud Light as well as scrutiny from anti-trans activists such as Robby Starbuck, who has pressured top companies to roll back their LGBTQ+ and DEI commitments.
Staying off the Trump's administration's radar is another high priority. The White House, which has reversed initiatives supporting LGBTQ+ people, particularly those who are transgender, has shown a willingness to hammer corporations that antagonize it.
"Businesses are afraid to go against this current administration in any way," said Eve Keller, co-president of United States Association of Prides, a nonprofit that supports nationwide Pride celebrations.
San Francisco Pride, one of the world's largest LGBTQ+ parades, lost sponsorships from Comcast and alcoholic beverage companies Anheuser-Busch and Diageo.
PepsiCo, Nissan and Citi are not returning to sponsor NYC Pride this year. Media director Chris Piedmont told USA TODAY on May 5 that one-third of its partners have scaled back, pulled funding or not yet finalized agreements.
Nissan, which is not sponsoring Pride parade activities this year, said in an emailed statement that it is reviewing "all marketing and sales spending" to "maximize both efficiency and breakthrough effectiveness."
Citi in an emailed statement said its Pride employee resource group is "excited about sponsoring a range of Pride Month celebrations and participating in local parades around the globe." Citi plans to march in NYC Pride and sponsor and march in at least 30 pride events globally.
Comcast, Anheuser-Busch, Diageo and PepsiCo did not return requests for comment from USA TODAY.
A much larger share of federal contractors - 57% - plan to dial back external engagement out of fear of federal investigations, Gravity Research found. Defense contractor Booz Allen Hamilton, which shuttered its DEI department, dropped sponsorship of Washington, D.C.'s WorldPride 2025, for example.
Some organizations still supporting Pride do not want their logo visible at events, according to Keller.
National brands feel boxed in by the political climate and the nation's growing polarization, said Bob Witeck, president of Witeck Communications, which specializes in LGBTQ+ marketing.
Sixty-five percent of executives surveyed by Gravity Research said they were bracing for Pride-related backlash.
"Some companies have anxiety about loss of federal contracts regulatory or governmental blowback if challenged on their DEI expression," Witeck said. "Many also are honestly confused about what forms this expression can take and whether Pride puts a target on them."
GLAAD President and CEO Sarah Kate Ellis said tariffs and other economic challenges have driven the recent pullbacks and emphasized that most companies are not scaling back this year.
"As companies are getting squeezed, they're squeezing all the other places where they market," Ellis said.
Observed every year in June, Pride Month commemorates the 1969 riots following a police raid of the Stonewall Inn in New York.
Over time, activism, from protests to boycotts, helped turn corporations into important allies in the global fight for gay rights, promoting LGBTQ+ equality internally with inclusive policies and publicly supporting same-sex marriage and opposing transgender bathroom laws.
Along the way, Pride Month became a magnet for "rainbow capitalism" - opportunities for corporations to run major promotions signaling support for LGBTQ+ people in a bid to win their wallets.
These shoppers represent a massive customer base: $1.4 trillion in annual purchasing power, according to a Merrill Lynch analysis from 2023.
At the same time, that customer base is growing. Almost 1 in 10 adults in the United States identifies as LGBTQ+, double the share since 2017, according to the most recent data from Gallup.
The numbers are fastest-growing among young people. Nearly one-quarter of adults in Generation Z - ages 18 to 27 - identify as LGBTQ+, Gallup found.
Consumer research consistently reflects that many customers, especially majorities of young LGBTQ+ people, favor brands that stick up for their values, according to Witek.
"Companies that lead with their values, stay true to them, and are prepared to withstand unfair, uninvited and unwarranted assaults are still with us," he said. "While the diverse LGBTQ+ communities truly feel risk and fear today, they are just as sensitive to the enduring bonds of friendship and visibility that allies show."
That's why, even as some corporations retreat, others are increasing their support, according to Keller.
"They understand that in about five years, we are going to be the most diverse nation on the planet. And everyone will know someone that is queer or nonbinary," she said.
Keller and her wife dropped Target and switched from Sam's Club to Costco after an 11-year membership due to DEI policy changes.
In January Costco shareholders voted down an investor proposal from a think tank that pushed management to investigate the business risks of its diversity initiatives.
More than 98% of shares were cast against the proposal. Costco chairman Hamilton "Tony" James and other board members had urged shareholders to reject the proposal.
"We are absolutely making decisions based on those organizations that are not afraid to stand with us, to be visible with us, and that match our values," Keller said.
Andi Otto's Minneapolis home has four Targets within a 10-minute drive. Despite the convenience, Otto puts his money toward companies that stick to their DEI commitments, like Costco.
"I used to be in there three to four times a week, and I am not there," he said. "I have chosen to spend my money at Costco. I'm learning to buy in bulk for a family of four."
Otto is Minnesota's Twin Cities Pride executive director. Twin Cities Pride announced in January that it would drop Target's partnership after the Minneapolis retail chain rolled back DEI programs.
In an emailed statement, Target said "we will continue to support local Pride events around the country, as we have for many years."
Target sales suffered in 2023 when some LGBTQ+ shoppers turned away from the company over its removal of Pride items from some stores. After a decadelong track record of featuring LGBTQ+ merchandise during Pride Month, Target said last year it would no longer sell its Pride Month collection in all stores.
Faced with a $50,000 budget shortfall, Twin Cities Pride launched a fundraising campaign and raked in more than twice that. But it wasn't enough to make up for the pullback in sponsors.
Just over 50 sponsors have committed to this year's Pride event so far, down from a typical year's 75, and the organization is still down about $200,000 from last year, according to Otto.
"The festival is still going to go on. The vendors are still going to be there and the people are still going to show up. But it puts huge constraints on what we can do throughout the year and how we can support the community," he said.