AUSTIN, Texas (AP) — This year’s Juneteenth celebrations are witnessing significant cutbacks due to funding shortages, as both companies and municipalities reconsider their financial commitment to diversity, equity, and inclusion (DEI) initiatives.
The repercussions of canceled federal grants and a shift away from brand activism are impacting parades and other events as they approach the federal holiday on Thursday, which commemorates the end of slavery in the United States.
The financial decline is occurring against a backdrop of many organizations reassessing their support for various celebrations, notably with some companies distancing themselves from LGBTQ events for Pride month and political attempts to dismantle DEI programs at the federal level by President Donald Trump.
In Denver, the Juneteenth Music Festival, one of the city’s prominent Juneteenth celebrations, experienced a significant reduction in support, with more than a dozen companies withdrawing financial backing.
Norman Harris, executive director of JMF Corporation, which organizes the event, noted a marked pullback in investments from sponsors this year.
“Quite a few sponsors… let us know they couldn’t or wouldn’t be in a position to support this year,” said Harris, who has been overseeing the festival for over a decade.
Due to budget constraints, the festival is now limited to one day instead of two, relying heavily on donations from individuals and foundations to remain viable.
“Thankfully, there was a wide range of support that came when we made the announcement that the celebration is in jeopardy,” Harris added.
Juneteenth commemorates June 19, 1865, the day when the last enslaved individuals in Texas were informed of their freedom, two years after the Emancipation Proclamation was issued by President Abraham Lincoln.
Historically celebrated within African American communities, the holiday gained official recognition in 2021 when it became a federal holiday.
The aftermath of George Floyd’s murder in 2020 spurred many businesses to adopt more inclusive branding strategies; however, this momentum has steadily declined in recent years, often due to backlash from conservative segments and a realization within companies that these initiatives may not significantly boost their revenue streams.
As noted by Dionne Nickerson, a marketing professor at Emory University, this retreat from DEI initiatives is increasingly evident in light of current economic uncertainties.
Additionally, Sonya Grier, a marketing professor at American University, remarked on how many businesses can no longer afford to sponsor Juneteenth events due to these financial pressures.
“It’s a whole confluence of issues,” Grier stated.
Local government support has also dwindled, impacting numerous celebrations.
For the first time since 2017, the governor’s office in West Virginia has declared that the state will not host any Juneteenth events this year, attributing the decision to a budget deficit.
Republican Governor Patrick Morrisey recently signed a bill that abolishes all diversity programs, further underscoring the rollback of support.
“Due to the continued fiscal challenges facing West Virginia, state government will not be sponsoring any formal activities,” wrote deputy press secretary Drew Galang in an email.
In Scottsdale, Arizona, city council members dissolved their DEI office earlier this year, which led to the cancellation of the city’s annual Juneteenth festival.
Jennifer Smith, a planner for the Southern Colorado Juneteenth Festival, reported that organizers in Colorado Springs had to change locations due to reduced sponsorship and cuts in city funding.
“This year, around five companies sponsored the event, compared to dozens in years past,” said Smith.
Some companies have cited cutbacks in their budgets as the reason for withdrawing their support for celebrations tied to DEI.
Safety concerns have also influenced planning decisions for some Juneteenth events.
Planners in Bend, Oregon, canceled their celebration, referencing “an increasingly volatile political climate” as a significant factor.
At the federal level, local organizations are facing budget reductions as well, particularly after the National Endowment for the Arts announced in May that it would be pulling funding from numerous grants.
The Cooper Family Foundation, known for organizing one of San Diego’s largest Juneteenth celebrations, was among the groups informed that their $25,000 grant from the NEA had been rescinded.
According to Maliya Jones, who works for the foundation, the email communicated that the event no longer aligned with the agency’s current priorities.
While the event will still proceed this year, members of the Cooper family will need to find a way to divide the costs among themselves.
“That’s $25,000 we have to figure out how we’re going to pay for,” said Marla Cooper, who leads the foundation.
Despite the challenges, she affirmed, “We will always have Juneteenth. And we will work it out.”
Lathan is a corps member for The Associated Press/Report for America Statehouse News Initiative, a nonprofit program that places journalists in local newsrooms to cover underreported issues.
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