One of Toronto’s largest festivals has received a lifeline from the city after announcing earlier this year that it would be scaling back its 2025 event due to reduced funding from some of its key sponsors coupled with rising costs of putting on the four-day event. Today, Mayor Olivia Chow announced that the city is providing $350,000 towards this year’s Pride Toronto festival, which will run from June 26 to 30, and committed to funding it for the next two years – pending city council approval. “I am announcing that the city of Toronto will be increasing funding, support for Pride Toronto by 62 per cent by 2027, starting with a 26 per cent increase this year,” Chow said during a news conference this morning at The 519 community centre. “Why the multi-year funding? It is a way for us to show confidence and to give Pride Toronto the foundation to say ‘You’re not going anywhere. We believe in you. Go out there and get the partnerships you need’.” The festival’s organizers say these funds will cover a roughly $300,000 shortfall they were facing, which led them to cancel the stage at Dundas and Church streets, pause a two-day mini festival on the Toronto Islands, and focus on booking more local artists instead of international headliners. Kojo Modeste, Pride Toronto’s executive director, previously said that three major sponsors, which he declined to name, either told them that there had been a “shift in priorities,” or that financially it was “not a good year” and they’re reevaluating their partnerships. “I strongly believe that there is a level of fear that might be instilled in those folks,” he said earlier this year, pointing to U.S. President Donald Trump’s disdain for diversity, equity, and inclusion (DEI) programs and his push to eliminate them federally. “The rising sentiment in the United States is you’re either with us or against us.” Modeste noted some of the companies that sponsor Pride Toronto operate both in Canada and the United States, and are likely feeling pressure to abandon their support for DEI initiatives. “Many of you know, because of what is happening in the U.S.A, we lost $300,000 so this is helping us to be able to add some events back, which we had to pull,” said Lezlie Maria Lee Kam, Pride Toronto’s co-chair, said during today’s news conference. Modeste added that this funding is “not just an investment in events.” “It is an investment in communities, in stories, and in the power of culture to bring us together,” he said in a release. “As we mark our 45th festival this year, this support from the City of Toronto comes at a critical time. With rising operational costs and growing pressure on Prides around the world due to an increasingly challenging political landscape, this funding represents leadership at its best. It ensures we can continue to deliver safe, accessible, and inclusive programming that uplifts 2SLGBTQI+ voices. It also helps maintain Pride as one of Toronto’s premier cultural festivals, drawing millions, supporting local economies, and showcasing the city’s commitment to equity and inclusion on the global stage.” Pride festivals in Toronto, Montreal, Vancouver, and Ottawa have a major economic impact on the city, the province, and the country, bringing in more than $1 billion in gross domestic product combined. Also present at this morning’s announcement were representatives from the Toronto Caribbean Carnival, which is also a recipient of this new funding that comes from the City of Toronto’s Cultural Festivals Funding Program. This year, the program will support 64 festivals, who will be receiving more than $2.5 million, a 33 per cent increase compared to 2024. Additionally, city council has also approved more than $1.35 million to renew the Special Events Stabilization Initiative in 2025 to support local event organizers in managing increased production costs. Applications for those grants will be available later this year. “I am excited to see new funding being provided to events such as Toronto Caribbean Carnival, Pride and many other festivals that put Toronto on the map as a cultural destination,” Toronto-Centre Coun. Chris Moise said in a release. “In many cases, these festivals give equity-deserving groups a rare chance to be seen and heard. These are the bright sparks that put our city a cut above the rest.” With files from CTV news Toronto’s Mike Walker